Insider Weekends – Director of Andeavor Logistics Acquires $7.25 Million Worth of Shares

Welcome to edition 426 of Insider Weekends. Insider buying more than doubled last week with insiders purchasing $200.17 million of stock compared to $98 million in the week prior. Selling also increased with insiders selling $1.7 billion of stock last week compared to $1.51 billion in the week prior.

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 dropped to 8.5. In other words, insiders sold almost 9 times as much stock as they purchased. The Sell/Buy ratio this week compares favorably with the prior week, when the ratio stood at 15.45.

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. Andeavor Logistics LP (ANDX): $49.04

Director Jeff A. Stevens acquired 148,330 shares of this energy pipeline company, paying $48.88 per share for a total amount of $7.25 million. Mr. Stevens increased his stake by 46.34% to 468,449 shares with this purchase.

The refining company Andeavor (ANDV) is the largest unit holder of Andeavor Logistics (ANDX) and recently upped its stake in ANDX from 59% to 64% following a $1.55 billion “drop-down” transaction. This transaction moved certain ANDV assets to ANDX in exchange for equity and $300 million in cash. ANDV is currently in the process of merging with Marathon Petroleum (MPC) with the deal expected to close by the end of the year.

You can view the list of recent insider transactions for Andeavor Logistics LP here.

2. Scientific Games Corporation (SGMS): $29.55

Shares of this gambling company were acquired by 2 insiders:

• Director Ronald O. Perelman acquired 175,000 shares, paying $31.73 per share for a total amount of $5.55 million. These shares were purchased indirectly by MacAndrews & Forbes Incorporated.
• Director Barry F. Schwartz acquired 5,000 shares, paying $30.35 per share for a total amount of $151,750. Mr. Schwartz increased his stake by 5.16% to 101,852 shares with this purchase.

You can view the list of recent insider transactions for Scientific Games Corporation here.

3. Second Sight Medical Products, Inc. (EYES): $1.54

Director Gregg Williams acquired 3,288,300 shares of this medical devices company, paying $1.55 per share for a total amount of $5.09 million. These shares were purchased indirectly through a trust.

You can view the list of recent insider transactions for Second Sight Medical Products, Inc. here.

4. Revlon, Inc. (REV): $17.3

Director Ronald O. Perelman acquired 253,943 shares of this beauty care products company, paying $16.83 per share for a total amount of $4.27 million. These shares were purchased indirectly by MacAndrews & Forbes Incorporated.

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

5. Platform Specialty Products Corporation (PAH): $12.39

Shares of this specialty chemicals company were acquired by 3 insiders:

• Director Martin E. Franklin acquired 260,000 shares, paying $12.01 per share for a total amount of $3.12 million. These shares were purchased indirectly through a trust.
• Director Ian G. Ashken acquired 50,000 shares, paying $12.01 per share for a total amount of $600,400. These shares were purchased indirectly by IGHA Holdings, LLLP.
• EVP, General Counsel & Sec. John Edward Capps acquired 20,833 shares, paying $12.05 per share for a total amount of $251,038. Mr. Capps increased his stake by 833.32% to 23,333 shares with this purchase.

This is the second week in a row insiders of PAH have acquired shares.

You can view the list of recent insider transactions for Platform Specialty Products Corporation here.

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

Notable Insider Sales:

1. Facebook, Inc. (FB): $173.8

Shares of Facebook were sold by 6 insiders:

• COB and CEO Mark Zuckerberg sold 1,050,000 shares for $181.01, generating $190.57 million from the sale.
• Chief Operating Officer Sheryl Sandberg sold 55,000 shares for $180.72, generating $9.94 million from the sale. These shares were sold as a result of exercising options immediately prior to the sale.
• Chief Technology Officer Michael Todd Schroepfer sold 38,037 shares for $180.72, generating $6.87 million from the sale. These shares were sold as a result of exercising options immediately prior to the sale.
• VP and General Counsel Colin Stretch sold 13,500 shares for $184.66, generating $2.49 million from the sale. These shares were sold as a result of exercising options immediately prior to the sale.
• Chief Product Officer Christopher K. Cox sold 10,600 shares for $180.98, generating $1.92 million from the sale. These shares were sold as a result of exercising options immediately prior to the sale.
• Chief Financial Officer David M. Wehner sold 9,522 shares for $180.20, generating $1.72 million 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 Facebook, Inc. here.

2. Garmin Ltd. (GRMN): $65.35

Executive Chairman Min H. Kao sold 908,366 shares of this GPS manufacturer for $64.06, generating $58.19 million from the sale.

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

3. Alphabet Inc. (GOOG): $1200.96

Shares of Alphabet were sold by 3 insiders:

• Director John L. Doerr sold 10,262 shares for $1218.20, generating $12.5 million from the sale. These shares were sold indirectly through a trust.
• CEO, Google LLC Sundar Pichai sold 10,000 shares for $1230.21, generating $12.3 million from the sale.
• SVP, Corporate Development David C. Drummond sold 5,690 shares for $1244.09, generating $7.08 million 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 Alphabet Inc. here.

4. CarGurus, Inc. (CARG): $50

Shares of this online auto shopping company  were sold by 7 insiders:

• Director Ian G. Smith sold 274,559 shares for $51.42, generating $14.12 million from the sale.
• Director Anastasios Parafestas sold 165,528 shares for $50.96, generating $8.44 million from the sale.
• Sr. VP, Consumer Marketing Sarah Amory Welch sold 30,000 shares for $52.32, generating $1.57 million from the sale.
• Chief Technology Officer Oliver Ian Chrzan sold 30,000 shares for $51.54, generating $1.55 million from the sale.
• CFO and Treasurer Jason Trevisan sold 30,000 shares for $52.43, generating $1.57 million from the sale.
• Chief Operating Officer Samuel Zales sold 15,000 shares for $51.31, generating $769,650 from the sale.
• Sr. VP, Product Thomas Michael Caputo sold 3,094 shares for $50.54, generating $156,371 from the sale.

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

5. Twitter, Inc. (TWTR): $32.73

Director Evan Clark Williams sold 682,242 shares of Twitter for $32.59, generating $22.24 million from the sale.

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

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 and Plus members.

Disclaimer: I hold a long position in Twitter. 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.

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