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Welcome to edition 421 of Insider Weekends. Insider buying decreased significantly last week with insiders purchasing $20.33 million of stock compared to $220.22 million in the week prior. Selling on the other hand, increased with insiders selling $937.49 million of stock last week compared to $823.77 million in the week prior. The period before earnings season is generally slow and so it not unusual to see low insider purchases and sales.
Sell/Buy Ratio: The insider Sell/Buy ratio is calculated by dividing the total insider sales in a given week by total insider purchases that week. The adjusted ratio for last week went up significantly to 46.1. In other words, insiders sold more than 46 times as much stock as they purchased. The Sell/Buy ratio this week compares unfavorably with the prior week, when the ratio stood at 3.74.
Note: As mentioned in the first post in this series, certain industries have their preferred metrics such as same store sales for retailers, funds from operations (FFO) for REITs and revenue per available room (RevPAR) for hotels that provide a better basis for comparison than simple valuation metrics. However metrics like Price/Earnings, Price/Sales and Enterprise Value/EBITDA included below should provide a good starting point for analyzing the majority of stocks.
Notable Insider Buys:
1. U.S. Xpress Enterprises, Inc. (USX): $15.64
Executive Chairman Max L. Fuller acquired 73,000 shares of this trucking company, paying $15.47 per share for a total amount of $1.13 million. These shares were purchased indirectly by Fuller Family Enterprises, LLC.