Welcome to edition 427 of Insider Weekends. Insider buying declined sharply last week with insiders purchasing $43.43 million of stock compared to $200.17 million in the week prior. Selling on the other hand increased with insiders selling $1.95 billion of stock last week compared to $1.7 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 increased significantly to 44.99. In other words, insiders sold almost 45 times as much stock as they purchased. The Sell/Buy ratio this week compares unfavorably with the prior week, when the ratio stood at 8.5.
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. Portola Pharmaceuticals, Inc. (PTLA): $28.17
Director Jeffrey W. Bird acquired 390,000 shares of this biotech company, paying $25.84 per share for a total amount of $10.08 million. These shares were purchased indirectly through a trust.
You can view the list of recent insider transactions for Portola Pharmaceuticals, Inc. here.
|P/E: N/A||Forward P/E: -6.94||Industry P/E: 108.72|
|P/S: 76.65||Price/Book: 8.53||EV/EBITDA: -4.15|
|Market Cap: $1.86B||Avg. Daily Volume: 1,336,574||52 Week Range: $24.63 – $64.56|
2. Andeavor Logistics LP (ANDX): $50.49
Director Jeff A. Stevens acquired 44,512 shares of this energy pipeline company, paying $49.40 per share for a total amount of $2.19 million. Mr. Stevens increased his stake by 9.50% to 512,961 shares with this purchase.
This purchase follows a $7.25 million purchase by Mr. Stevens last week. We wrote the following after the transaction last week,
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.
|P/E: 22.3407||Forward P/E: 14.9822||Industry P/E: 63.03|
|P/S: 3.81488||Price/Book: 3.94607||EV/EBITDA: 14.463|
|Market Cap: $12.51B||Avg. Daily Volume: 617,304||52 Week Range: $40.66 – $55.21|
3. Corcept Therapeutics Incorporated (CORT): $13.58
Director Leonard G. Baker acquired 141,473 shares of this pharmaceutical company, paying $12.61 per share for a total amount of $1.78 million. These shares were purchased indirectly through a trust.
Mr. Baker is a Managing Director at Sutter Hill Ventures, Silicon Valley’s oldest venture capital firm and has served on Corcept’s board since 1999. According to Barron’s, Mr. Baker abruptly switched from selling Corcept stock to buying it. The switch from selling to buying does not seem as abrupt to me as Barron’s makes it out to be on account of the fact that the last two sales by Mr. Baker occurred in May of this year and November 2017 following options exercises as you can see here. That said, given the length of Mr. Baker’s tenure on Corcept’s board, the company is worth exploring further.
You can view the list of recent insider transactions for Corcept Therapeutics Incorporated here.
|P/E: 11.6667||Forward P/E: 10.5271||Industry P/E: 29.46|
|P/S: 7.2957||Price/Book: 6.47283||EV/EBITDA: 17.364|
|Market Cap: $1.58B||Avg. Daily Volume: 1,333,209||52 Week Range: $11.55 – $25.96|
4. Odonate Therapeutics, Inc. (ODT): $20.4
Chief Executive Officer Kevin C. Tang acquired 57,190 shares of this biotech company, paying $19.49 per share for a total amount of $1.11 million. These shares were purchased indirectly by Tang Capital Partners, LP.
You can view the list of recent insider transactions for Odonate Therapeutics, Inc. here.
|P/E: N/A||Forward P/E: -6.34||Industry P/E: 29.46|
|P/S: N/A||Price/Book: 3.18||EV/EBITDA: -5.33|
|Market Cap: $548.59M||Avg. Daily Volume: 37,047||52 Week Range: $15.15 – $32|
5. Reed’s, Inc. (REED): $3.15
Shares of this beverage company were acquired by 2 insiders:
- Director John Bello acquired 414,477 shares, paying $2.49 per share for a total amount of $1.03 million. Mr. Bello increased his stake by 58.13% to 1,127,521 shares with this purchase.
- Director James C. Bass acquired 3,000 shares, paying $2.60 per share for a total amount of $7,786. Mr. Bass increased his stake by 4.39% to 71,412 shares with this purchase.
You can view the list of recent insider transactions for Reed’s, Inc. here.
|P/E: N/A||Forward P/E: -19.69||Industry P/E: 29.38|
|P/S: 2.1||Price/Book: N/A||EV/EBITDA: -12.93|
|Market Cap: $80.48M||Avg. Daily Volume: 53,119||52 Week Range: $1.3 – $3.15|
You can view the full list of purchases from this Insider Buying page.
Notable Insider Sales:
1. Walmart Inc. (WMT): $94.95
Shares of Walmart were sold by 2 insiders:
- Director Robson S. Walton sold 3,682,125 shares for $96.07, generating $353.74 million from the sale. These shares were sold indirectly by a trust.
- Executive Vice President Daniel J. Bartlett sold 2,883 shares for $96.25, generating $277,497 from the sale.
You can view the list of recent insider transactions for Walmart Inc. here.
|P/E: 54.32||Forward P/E: 19.49||Industry P/E: 86.13|
|P/S: 0.55||Price/Book: 3.93||EV/EBITDA: 10.08|
|Market Cap: $280.18B||Avg. Daily Volume: 7,931,914||52 Week Range: $77.5 – $109.98|
2. Facebook, Inc. (FB): $174.645
Shares of Facebook were sold by 2 insiders:
- COB and CEO Mark Zuckerberg sold 734,849 shares for $174.40, generating $128.16 million from the sale. These shares were sold indirectly through various entities.
- VP and General Counsel Colin Stretch sold 750 shares for $172.20, generating $129,150 from the sale.
You can view the list of recent insider transactions for Facebook, Inc. here.
|P/E: 27.02||Forward P/E: 20.94||Industry P/E: 65.75|
|P/S: 10.39||Price/Book: 6.36||EV/EBITDA: 16.78|
|Market Cap: $504.24B||Avg. Daily Volume: 24,181,660||52 Week Range: $149.02 – $218.62|
3. Garmin Ltd. (GRMN): $64.74
Executive Chairman Min H. Kao sold 1,277,234 shares of this GPS manufacturer for $65.06, generating $83.09 million from the sale. These shares were sold indirectly by Mr. Kao’s children.
You can view the list of recent insider transactions for Garmin Ltd. here.
|P/E: 20.4227||Forward P/E: 19.0973||Industry P/E: 29.25|
|P/S: 3.79666||Price/Book: 3.25163||EV/EBITDA: 13.982|
|Market Cap: $12.22B||Avg. Daily Volume: 1,007,474||52 Week Range: $50.98 – $65.96|
4. Black Knight, Inc. (BKI): $53.45
Executive Chairman William P. Foley sold 977,000 shares of this software and data analytics company for $51.68, generating $50.49 million from the sale.
You can view the list of recent insider transactions for Black Knight, Inc. here.
|P/E: 28.16||Forward P/E: 26.07||Industry P/E: 33.27|
|P/S: 7.41||Price/Book: 4.68||EV/EBITDA: 24.32|
|Market Cap: $7.99B||Avg. Daily Volume: 614,519||52 Week Range: $0.085 – $56.45|
5. The Blackstone Group L.P. (BX): $36.7
Vice Chairman Tomilson J. Hill sold 674,257 shares of this asset management company for $36.48, generating $24.59 million from the sale.
You can view the list of recent insider transactions for The Blackstone Group L.P. here.
|P/E: 13.79||Forward P/E: 11.36||Industry P/E: 71.16|
|P/S: 5.57||Price/Book: 3.51||EV/EBITDA: N/A|
|Market Cap: $43.9B||Avg. Daily Volume: 3,532,712||52 Week Range: $29.57 – $37.52|
You can view the full list of sales from this Insider Sales page.
Disclaimer: 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.