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.
It is interesting to see the Mr. Fuller purchase shares less than a month after the company went public at $16.00 per share. He also purchased over $8 million worth of stock in the week prior, which represents more than 1% of the company’s enterprise value.
The latest filings indicate that his purchases were effected pursuant to a Rule 10b5-1 purchase plan of Fuller Family Enterprises, LLC. Considering the establishment of the 10b5-1 purchase plan, we can expect to see more purchases by Fuller Family Enterprises in the future.
You can view the list of recent insider transactions for U.S. Xpress Enterprises, Inc. here.
|P/E: 65.17||Forward P/E: N/A||Industry P/E: 24.17|
|P/S: 0.49||Price/Book: N/A||EV/EBITDA: 5.39|
|Market Cap: $796.23M||Avg. Daily Volume: 759,525||52 Week Range: $12.61 – $16.94|
2. Dermira, Inc. (DERM): $11.56
CEO & Chairman of the Board Thomas G. Wiggans acquired 12,000 shares of this biotech company, paying $10.00 per share for a total amount of $119,951. Mr. Wiggans increased his stake by 17.78% to 79,510 shares with this purchase.
You can view the list of recent insider transactions for Dermira, Inc. here.
|P/E: N/A||Forward P/E: -2.15||Industry P/E: 204.7|
|P/S: 128.18||Price/Book: 3.78||EV/EBITDA: -1.12|
|Market Cap: $483.76M||Avg. Daily Volume: 1,082,284||52 Week Range: $6.98 – $31.42|
3. Community Bankers Trust Corporation (ESXB): $9.9
Shares of this regional bank were acquired by 2 insiders:
- Director Oliver L. Way acquired 11,200 shares, paying $9.09 per share for a total amount of $101,808.
- Director Hugh M. Fain acquired 554 shares, paying $9.85 per share for a total amount of $5,457.
You can view the list of recent insider transactions for Community Bankers Trust Corporation here.
|P/E: 30||Forward P/E: 15||Industry P/E: 19.21|
|P/S: 4.47||Price/Book: 1.75||EV/EBITDA: N/A|
|Market Cap: $218.63M||Avg. Daily Volume: 41,776||52 Week Range: $7.9 – $10.05|
4. Investors Real Estate Trust (IRET): $5.47
EVP and CFO John Kirchmann acquired 18,000 shares of this apartment REIT , paying $5.49 per share for a total amount of $98,730. Mr. Kirchmann increased his stake by 57.01% to 49,571 shares with this purchase.
You can view the list of recent insider transactions for Investors Real Estate Trust here.
|P/E: 6.27||Forward P/E: -22.79||Industry P/E: 33.17|
|P/S: 4.3||Price/Book: 1.27||EV/EBITDA: 12.5|
|Market Cap: $730.27M||Avg. Daily Volume: 416,873||52 Week Range: $4.61 – $6.75|
5. GMS Inc. (GMS): $25.59
Shares of this building materials company were acquired by 2 insiders:
- Sr. VP of Operations Richard Alan Adams acquired 2,000 shares, paying $26.44 per share for a total amount of $52,887. Mr. Adams increased his stake by 1.18% to 172,000 shares with this purchase.
- VP, GC and Corporate Secretary Craig D. Apolinsky acquired 1,000 shares, paying $26.32 per share for a total amount of $26,320. Mr. Apolinsky increased his stake by 18.64% to 6,364 shares with this purchase.
You can view the list of recent insider transactions for GMS Inc. here.
|P/E: 17.17||Forward P/E: 6.99||Industry P/E: 37.08|
|P/S: 0.42||Price/Book: 1.81||EV/EBITDA: 8.87|
|Market Cap: $1.05B||Avg. Daily Volume: 442,928||52 Week Range: $23.5 – $39.98|
You can view the full list of purchases from this Insider Buying page.
Notable Insider Sales:
1. Facebook, Inc. (FB): $207.32
Shares of Facebook were sold by 3 insiders:
- COB and CEO Mark Zuckerberg sold 1,234,000 shares for $201.78, generating $248.99 million from the sale. These shares were sold indirectly by various entities.
- Chief Technology Officer Michael Todd Schroepfer sold 37,982 shares for $203.67, generating $7.74 million from the sale. These shares were sold indirectly by a trust.
- VP and General Counsel Colin Stretch sold 1,500 shares for $198.58, generating $297,870 from the sale.
You can view the list of recent insider transactions for Facebook, Inc. here.
|P/E: 34.32||Forward P/E: 22.39||Industry P/E: 34.25|
|P/S: 13.46||Price/Book: 7.75||EV/EBITDA: 21.41|
|Market Cap: $600.11B||Avg. Daily Volume: 24,016,264||52 Week Range: $147.8 – $208.42|
2. Twitter, Inc. (TWTR): $44.49
Director Evan Clark Williams sold 682,242 shares of Twitter for $44.34, generating $30.25 million from the sale. 632,956 of these shares were sold indirectly through various trusts and entities.
You can view the list of recent insider transactions for Twitter, Inc. here.
|P/E: 2224.5||Forward P/E: 52.34||Industry P/E: 34.25|
|P/S: 13.03||Price/Book: 6.39||EV/EBITDA: 65.40|
|Market Cap: $33.36B||Avg. Daily Volume: 29,047,151||52 Week Range: $15.67 – $47.79|
3. Ollie’s Bargain Outlet Holdings, Inc. (OLLI): $74.8
President, CEO Mark L. Butler sold 375,000 shares of this discount store chain for $73.00, generating $27.38 million from the sale. 250,000 of these shares were sold indirectly through a trust.
You can view the list of recent insider transactions for Ollie’s Bargain Outlet Holdings, Inc. here.
|P/E: 35.17||Forward P/E: 37.03||Industry P/E: 61.68|
|P/S: 4.14||Price/Book: 5.65||EV/EBITDA: 28.85|
|Market Cap: $4.66B||Avg. Daily Volume: 812,100||52 Week Range: $41.305 – $77.5|
4. Garmin Ltd. (GRMN): $63.23
Executive Chairman Min H. Kao sold 370,832 shares of this GPS manufacturer for $62.48, generating $23.17 million from the sale.
You can view the list of recent insider transactions for Garmin Ltd. here.
|P/E: 20.4||Forward P/E: 19.34||Industry P/E: 27.44|
|P/S: 3.78||Price/Book: 2.98||EV/EBITDA: 13.68|
|Market Cap: $11.92B||Avg. Daily Volume: 851,365||52 Week Range: $49.8 – $65.96|
5. VMware, Inc. (VMW): $155.05
Shares of this virtualization software company were sold by 3 insiders:
- COO, Products & Cloud Services Rangarajan Raghuram sold 38,000 shares for $154.98, generating $5.89 million from the sale.
- Sr. Vice President, CAO P. Kevan Krysler sold 13,485 shares for $158.63, generating $2.14 million from the sale. 1,891 of these shares were sold as a result of exercising options immediately prior to the sale.
- Chief Financial Officer & EVP Zane Rowe sold 7,100 shares for $156.44, generating $1.11 million from the sale.
You can view the list of recent insider transactions for VMware, Inc. here.
|P/E: 50.49||Forward P/E: 23.39||Industry P/E: 20.22|
|P/S: 7.73||Price/Book: 6.52||EV/EBITDA: 24.89|
|Market Cap: $63.08B||Avg. Daily Volume: 1,816,604||52 Week Range: $85.7 – $165|
You can view the full list of sales from this Insider Sales page.
Disclaimer: I hold a long position in Twitter (TWTR). Please do your own due diligence before buying or selling any securities mentioned in this article. We do not warrant the completeness or accuracy of the content or data provided in this article.