Insider Weekends – Director of GE Acquires Nearly $2.5 Million Of Stock

Welcome to edition 423 of Insider Weekends. Insider buying decreased significantly last week with insiders purchasing $38.65 million of stock compared to $126.65 million in the week prior. Selling on the other hand, increased with insiders selling $912.22 million of stock last week compared to $765.32 million in the week prior.

As we mentioned last week, a majority of this jump in insider buying in the week prior was related to the CEO of Walgreens Boots Alliance (WBA) purchasing nearly 1.7 million shares for $108.5 million in a private transaction from the Co-COO of the company.

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 to 23.6. In other words, insiders sold almost 24 times as much stock as they purchased. The Sell/Buy ratio this week compares unfavorably with the prior week, when the ratio stood at 6.04.

Insider Sector Heat Map July 27, 2018

Insider Sector Heat Map July 27, 2018

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. AT&T Inc. (T): $31.08

Shares of AT&T were acquired by 5 insiders:

  • Director Matthew K. Rose acquired 65,500 shares, paying $30.51 per share for a total amount of $1.99 million. Mr. Rose increased his stake by 200.92% to 98,100 shares with this purchase.
  • Director Geoffrey Y. Yang acquired 49,390 shares, paying $30.39 per share for a total amount of $1.5 million. These shares were purchased indirectly through IRA.
  • Director Beth E. Mooney acquired 16,100 shares, paying $30.71 per share for a total amount of $494,358. Ms. Mooney increased her stake by 127.78% to 28,700 shares with this purchase.
  • Director Scott T. Ford acquired 15,000 shares, paying $30.25 per share for a total amount of $453,675. Mr. Ford increased his stake by 22.62% to 81,319 shares with this purchase.
  • Director Michael B. McCallister acquired 4,000 shares, paying $30.25 per share for a total amount of $121,007. These shares were purchased indirectly through a trust.

You can view the list of recent insider transactions for AT&T Inc. here.

P/E: 6.27 Forward P/E: 8.59 Industry P/E: 60.18
P/S: 1.42 Price/Book: 1.31 EV/EBITDA: 7.01
Market Cap: $225.67B Avg. Daily Volume: 43,752,909 52 Week Range: $30.13 – $39.8

2. General Electric Company (GE): $13.06

Director Lawrence H. Culp Jr. acquired 191,000 shares of General Electric, paying $13.04 per share for a total amount of $2.49 million. These shares were purchased indirectly by a holding company.

Mr. Culp was formerly the CEO of Danaher and was appointed to GE’s board earlier this year.

You can view the list of recent insider transactions for General Electric Company here.

P/E: N/A Forward P/E: 12.56 Industry P/E: 19.76
P/S: 0.92 Price/Book: 2.03 EV/EBITDA: 42.25
Market Cap: $113.43B Avg. Daily Volume: 68,124,679 52 Week Range: $12.61 – $27.59

3. OPKO Health, Inc. (OPK): $4.95

CEO & Chairman Phillip Frost M.D. acquired 215,000 shares of this medical devices and drug development company, paying $5.35 per share for a total amount of $1.15 million. These shares were purchased indirectly by Frost Nevada Investments Trust.

You can view the list of recent insider transactions for OPKO Health, Inc. here.

P/E: N/A Forward P/E: -26.05 Industry P/E: 29.2
P/S: 2.62 Price/Book: 1.52 EV/EBITDA: -18.74
Market Cap: $2.77B Avg. Daily Volume: 5,436,815 52 Week Range: $2.66 – $7.24

4. salesforce.com, inc. (CRM): $143.91

Director Susan Wojcicki acquired 6,000 shares of this cloud software company, paying $146.22 per share for a total amount of $877,295. Ms. Wojcicki increased her stake by 8.40% to 77,426 shares with this purchase.

Ms. Wojcicki has been consistently purchasing 6,000 shares a month since the start of this year under an established 10b5-1 purchase plan.

You can view the list of recent insider transactions for salesforce.com, inc. here.

P/E: 226.99 Forward P/E: 53.1 Industry P/E: 23.54
P/S: 9.64 Price/Book: 9.55 EV/EBITDA: 96.55
Market Cap: $106.91B Avg. Daily Volume: 4,870,149 52 Week Range: $87.26 – $149.35

5. RPM International Inc. (RPM): $63.89

Director John M. Ballbach acquired 8,100 shares of this specialty chemicals company, paying $62.12 per share for a total amount of $503,163.

You can view the list of recent insider transactions for RPM International Inc. here.

P/E: 23.12 Forward P/E: 16.95 Industry P/E: 26.35
P/S: 1.63 Price/Book: 5.23 EV/EBITDA: 14.43
Market Cap: $8.54B Avg. Daily Volume: 1,234,029 52 Week Range: $46.36 – $64.4

You can view the full list of purchases from this Insider Buying page.

Notable Insider Sales:

1. Facebook, Inc. (FB): $174.89

Shares of Facebook were sold by 4 insiders:

  • COB and CEO Mark Zuckerberg sold 1,234,000 shares for $212.11, generating $261.74 million from the sale. These shares were sold indirectly by various entities.
  • Chief Operating Officer Sheryl Sandberg sold 55,000 shares for $208.53, generating $11.47 million from the sale. These shares were sold indirectly through a trust.
  • Chief Product Officer Christopher K. Cox sold 10,600 shares for $210.66, generating $2.23 million from the sale.
  • VP and General Counsel Colin Stretch sold 750 shares for $215.81, generating $161,857 from the sale.

You can view the list of recent insider transactions for Facebook, Inc. here.

P/E: 28.95 Forward P/E: 20.53 Industry P/E: 38.12
P/S: 11.35 Price/Book: 6.54 EV/EBITDA: 21.41
Market Cap: $506.24B Avg. Daily Volume: 24,016,264 52 Week Range: $147.8 – $203.55

2. Intuitive Surgical, Inc. (ISRG): $519.21

Shares of this medical instruments & supplies company were sold by 6 insiders:

  • Director Lonnie M. Smith sold 56,000 shares for $523.37, generating $29.31 million from the sale. 6,000 of these shares were sold indirectly through a trust.
  • EVP & Chief Commercial Officer David J. Rosa sold 20,000 shares for $524.41, generating $10.49 million from the sale. These shares were sold as a result of exercising options immediately prior to the sale.
  • Director Amal M. Johnson sold 3,000 shares for $522.02, generating $1.57 million from the sale. These shares were sold as a result of exercising options immediately prior to the sale.
  • Director Craig H. Barratt sold 2,500 shares for $522.00, generating $1.31 million from the sale. These shares were sold as a result of exercising options immediately prior to the sale.
  • VP & Principal Accounting Officer Jamie Samath sold 862 shares for $523.40, generating $451,170 from the sale. These shares were sold as a result of exercising options immediately prior to the sale.
  • EVP & Chief Medical Officer Curet Myriam sold 712 shares for $523.46, generating $372,706 from the sale. These shares were sold as a result of exercising options immediately prior to the sale.

You can view the list of recent insider transactions for Intuitive Surgical, Inc. here.

P/E: 79.26 Forward P/E: 42.42 Industry P/E: 36.64
P/S: 17.91 Price/Book: 10.7 EV/EBITDA: 43.4
Market Cap: $59.06B Avg. Daily Volume: 812,274 52 Week Range: $307.893 – $539.3

3. Twitter, Inc. (TWTR): $34.12

Director Evan Clark Williams sold 682,242 shares of Twitter for $42.75, generating $29.16 million from the sale. These shares were sold indirectly through various trusts.

You can view the list of recent insider transactions for Twitter, Inc. here.

P/E: 1706 Forward P/E: 40.14 Industry P/E: 38.12
P/S: 9.99 Price/Book: 4.91 EV/EBITDA: 65.4
Market Cap: $25.59B Avg. Daily Volume: 29,047,151 52 Week Range: $15.67 – $47.79

4. Carbonite, Inc. (CARB): $35.3

Director David Friend sold 698,080 shares of this data backups and disaster recovery solutions provider for $37.50, generating $26.18 million from the sale. These shares were sold indirectly through a trust.

You can view the list of recent insider transactions for Carbonite, Inc. here.

P/E: 2941.67 Forward P/E: 19.18 Industry P/E: 23.54
P/S: 4.82 Price/Book: 14.95 EV/EBITDA: 64.11
Market Cap: $1.19B Avg. Daily Volume: 463,785 52 Week Range: $18.55 – $41.25

5. Garmin Ltd. (GRMN): $62.93

Shares of this GPS manufacturer were sold by 2 insiders:

  • Executive Chairman Min H. Kao sold 283,122 shares for $63.82, generating $18.07 million from the sale.
  • EVP, Operations Patrick Desbois sold 3,884 shares for $65.00, generating $252,460 from the sale.

You can view the list of recent insider transactions for Garmin Ltd. here.

P/E: 20.31 Forward P/E: 19.19 Industry P/E: 26.75
P/S: 3.76 Price/Book: 2.97 EV/EBITDA: 13.68
Market Cap: $11.86B Avg. Daily Volume: 876,974 52 Week Range: $49.8 – $65.96

You can view the full list of sales from this Insider Sales page.

The list of all insider purchases and sales by management people is only available to InsideArbitrage Premium members.

Disclaimer: I hold long positions in General Electric (GE) and 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.

Connect with me on LinkedIn: http://www.linkedin.com/in/asifsuria or follow me on Twitter @asifsuria

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