Welcome to edition 430 of Insider Weekends. Insider buying increased significantly last week with insiders purchasing $106.41 million of stock compared to $38.88 million in the week prior. Selling also increased with insiders selling $1.72 billion of stock last week compared to $1.11 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 declined to 16.12. In other words, insiders sold more than 16 times as much stock as they purchased. The Sell/Buy ratio this week compares favorably with the prior week, when the ratio stood at 28.6.
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. Energy Transfer Partners, L.P. (ETP): $22.27
Chief Executive Officer Kelcy L. Warren acquired 2,000,000 shares of this energy storage and transportation company, paying $22.42 per share for a total amount of $44.85 million. Mr. Warren increased his stake by 87.43% to 4,287,442 shares with this purchase.
You can view the list of recent insider transactions for Energy Transfer Partners, L.P. here.
|P/E: 20.64||Forward P/E: 13.58||Industry P/E: 58.81|
|P/S: 0.78||Price/Book: 1.02||EV/EBITDA: 10.91|
|Market Cap: $25.98B||Avg. Daily Volume: 6,095,123||52 Week Range: $15.06 – $24.38|
2. Magnolia Oil & Gas Corporation (MGY): $14.53
Shares of this oil and gas exploration and production were acquired by 2 insiders:
- Director John B. Walker acquired 160,000 shares, paying $13.76 per share for a total amount of $2.2 million.
- Executive VP, CFO & Secretary Christopher G. Stavros acquired 10,000 shares, paying $13.59 per share for a total amount of $135,900. Mr. Stavros increased his stake by 8.81% to 123,500 shares with this purchase.
You can view the list of recent insider transactions for Magnolia Oil & Gas Corporation here.
|P/E: N/A||Forward P/E: 11.09||Industry P/E: 12.3|
|P/S: N/A||Price/Book: 234.36||EV/EBITDA: N/A|
|Market Cap: $3.44B||Avg. Daily Volume: 1,229,321||52 Week Range: $12.23 – $14.63|
3. Keurig Dr Pepper Inc. (KDP): $24.47
Chief Corp. Affairs Officer Maria A. Sceppaguercio-Gever acquired 49,638 shares of this beverages company, paying $23.91 per share for a total amount of $1,186,643. Ms. Sceppaguercio-Gever increased her stake by 77.29% to 113,861 shares with this purchase.
You can view the list of recent insider transactions for Keurig Dr Pepper Inc. here.
|P/E: 0.23||Forward P/E: 16.21||Industry P/E: 28.44|
|P/S: 8.07||Price/Book: 0.03||EV/EBITDA: 4.64|
|Market Cap: $33.93B||Avg. Daily Volume: 4,252,016||52 Week Range: $20.46 – $123.77|
4. RH (RH): $136.7
Chairman & CEO Gary G. Friedman acquired 7,622 shares of this home furnishings company, paying $131.19 per share for a total amount of $999,911. Mr. Friedman increased his stake by 0.34% to 2,253,332 shares with this purchase.
We wrote the following about Mr. Friedman’s insider purchases of RH last October,
Mr. Friedman also purchased nearly a $1 million worth of stock in mid-September, a day after the stock shot up 45% on improved full-year outlook from this retailer. On an unrelated note, Mr. Friedman shared an interesting anecdote at the Goldman Sachs Global Retailing Conference last month related to Google adwords advertising that @parsimony16 posted on Twitter.
The stock is up nearly 500% since his mid-2016 purchases at an average price of $27.59. While the stock was cheap when he purchased in mid-2016 and in 2017, it does not look inexpensive compared to other retail stocks now.
You can view the list of recent insider transactions for RH here.
|P/E: 31.99||Forward P/E: 17.00||Industry P/E: 30.81|
|P/S: 1.24||Price/Book: 20.80||EV/EBITDA: 11.99|
|Market Cap: $3.04B||Avg. Daily Volume: 1,087,680||52 Week Range: $68.39 – $164.49|
5. FGL Holdings (FG): $8.69
Shares of this insurance company were acquired by 2 insiders:
- Director Richard N. Massey acquired 50,000 shares, paying $8.76 per share for a total amount of $437,750. Mr. Massey increased his stake by 400.38% to 62,488 shares with this purchase.
- Chief Financial Officer Dennis Vigneau acquired 25,000 shares, paying $8.75 per share for a total amount of $218,750.
You can view the list of recent insider transactions for FGL Holdings here.
|P/E: N/A||Forward P/E: 6.34||Industry P/E: 16.07|
|P/S: 1.09||Price/Book: 1.39||EV/EBITDA: 11.37|
|Market Cap: $1.86B||Avg. Daily Volume: 1,141,665||52 Week Range: $8.14 – $11.94|
You can view the full list of purchases from this Insider Buying page.
Notable Insider Sales:
1. Walmart Inc. (WMT): $94.59
Director Robson S. Walton sold 1,030,640 shares of Walmart for $96.65, generating $99.61 million from the sale. These shares were sold indirectly through a trust.
You can view the list of recent insider transactions for Walmart Inc. here.
|P/E: 54.11||Forward P/E: 19.46||Industry P/E: 84.82|
|P/S: 0.54||Price/Book: 3.91||EV/EBITDA: 9.85|
|Market Cap: $277.03B||Avg. Daily Volume: 7,718,946||52 Week Range: $77.5 – $109.98|
2. Heron Therapeutics, Inc. (HRTX): $34.65
Director Kevin C. Tang sold 2,695,000 shares of this biotech company for $35.75, generating $96.35 million from the sale. These shares were sold indirectly by Tang Capital Partners.
You can view the list of recent insider transactions for Heron Therapeutics, Inc. here.
|P/E: N/A||Forward P/E: -47.47||Industry P/E: 103.44|
|P/S: 56.74||Price/Book: 6.24||EV/EBITDA: -13.07|
|Market Cap: $2.69B||Avg. Daily Volume: 1,107,834||52 Week Range: $14.4 – $42.9|
3. Invitation Homes Inc. (INVH): $23.56
Director Barry S. Sternlicht sold 1,309,849 shares of this residential REIT for $23.55, generating $30.85 million from the sale. 199,374 of these shares were sold indirectly by various entities.
You can view the list of recent insider transactions for Invitation Homes Inc. here.
|P/E: N/A||Forward P/E: 261.78||Industry P/E: 23.42|
|P/S: 8.73||Price/Book: 1.45||EV/EBITDA: 28.59|
|Market Cap: $12.48B||Avg. Daily Volume: 2,214,326||52 Week Range: $20.245 – $24.3|
4. Intuit Inc. (INTU): $227.54
Chairman of the Executive Comm Scott D. Cook sold 100,000 shares of this software application company for $220.30, generating $22.03 million from the sale. These shares were sold indirectly by various trusts.
You can view the list of recent insider transactions for Intuit Inc. here.
|P/E: 49.04||Forward P/E: 31.17||Industry P/E: 37.04|
|P/S: 9.87||Price/Book: 24.99||EV/EBITDA: 32.11|
|Market Cap: $58.86B||Avg. Daily Volume: 1,382,930||52 Week Range: $140.21 – $229.86|
5. Twitter, Inc. (TWTR): $30.12
Shares of Twitter were sold by 2 insiders:
- Director Evan Clark Williams sold 682,242 shares for $30.01, generating $20.47 million from the sale.
- CFO Ned D. Segal sold 6,000 shares for $30.44, generating $182,640 from the sale.
You can view the list of recent insider transactions for Twitter, Inc. here.
|P/E: 97.48||Forward P/E: 38.13||Industry P/E: 68.71|
|P/S: 8.43||Price/Book: 4.077||EV/EBITDA: 34.58|
|Market Cap: $22.74B||Avg. Daily Volume: 28,058,528||52 Week Range: $16.57 – $47.79|
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.