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Welcome to edition 424 of Insider Weekends. Insider buying increased significantly last week with insiders purchasing $107.23 million of stock compared to $38.6 million in the week prior. Selling also increased with insiders selling $1.27 billion of stock last week compared to $912.22 million in the week prior. With earnings season in full swing and quiet period restrictions on insiders ending, we are likely to see more insider activity and hopefully more interesting insider purchases in the weeks ahead.
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 down to 11.85. In other words, insiders sold almost 12 times as much stock as they purchased. The Sell/Buy ratio this week compares unfavorably with the prior week, when the ratio stood at 23.6.
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. Mohawk Industries, Inc. (MHK): $186.61
Director Filip Balcaen acquired 75,000 shares of this home flooring products company, paying $183.16 per share for a total amount of $13.74 million. These shares were purchased indirectly by Floorenter NV.