Welcome to edition 443 of Insider Weekends. Insider buying increased significantly last week with insiders purchasing $205.39 million million of stock compared to $62.43 million in the week prior. Nearly a third of the buying last week was related to the IPO of biotech company Synthorx (THOR) but insiders of other companies also stepped up their buying ahead of the end of quarter quiet period. Selling on the other hand decreased with insiders selling $809.7 million of stock last week compared to $1.06 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 3.94. In other words, insiders sold almost 4 times as much stock as they purchased. The Sell/Buy ratio this week compares favorably with the prior week, when the ratio stood at 16.96.
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): $116.98
Shares of this home flooring products company were acquired by 2 insiders:
These purchases follow a $10.99 million purchase by Mr. Balcaen we wrote about last week. With the pull back in the stock last week, Mohawk is down more than 57% this year compared to a 3.35% drop in the S&P 500. While revenue continued to grow in 2018, the rate of growth declined and earnings declined as well due to higher input costs.
You can view the list of recent insider transactions for Mohawk Industries, Inc. here.
P/E: 2.34 | Forward P/E: 9.87 | Industry P/E: 23.8 |
P/S: 0.88 | Price/Book: 1.15 | EV/EBITDA: 6.54 |
Market Cap: $8.68B | Avg. Daily Volume: 1,349,493 | 52 Week Range: $113.45 – $282.21 |
2. Newmark Group, Inc. (NMRK): $9.07
Shares of this real estate services company were acquired by 2 insiders:
You can view the list of recent insider transactions for Newmark Group, Inc. here.
P/E: 45.12 | Forward P/E: 5.56 | Industry P/E: 19.74 |
P/S: 1.3 | Price/Book: 4.2 | EV/EBITDA: 16.23 |
Market Cap: $2.44B | Avg. Daily Volume: 1,167,601 | 52 Week Range: $8.01 – $16.98 |
3. Live Oak Bancshares, Inc. (LOB): $14.84
Shares of this bank holding company were acquired by 9 insiders:
You can view the list of recent insider transactions for Live Oak Bancshares, Inc. here.
P/E: 5.48 | Forward P/E: 43.65 | Industry P/E: 18.6 |
P/S: 2.92 | Price/Book: 1.25 | EV/EBITDA: N/A |
Market Cap: $595.78M | Avg. Daily Volume: 274,301 | 52 Week Range: $13.46 – $32.95 |
4. Entercom Communications Corp. (ETM): $6.38
Chairman Emeritus Joseph M. Field acquired 600,000 shares of this radio broadcasting company, paying $6.52 per share for a total amount of $3.91 million. These shares were purchased indirectly by Mr. Field’s spouse and trust.
You can view the list of recent insider transactions for Entercom Communications Corp. here.
P/E: 3.18 | Forward P/E: 6.44 | Industry P/E: 24.29 |
P/S: 0.7 | Price/Book: 0.52 | EV/EBITDA: 11.64 |
Market Cap: $909.31M | Avg. Daily Volume: 1,276,331 | 52 Week Range: $5.82 – $11.7 |
5. Aramark (ARMK): $32.08
Shares of this food, facilities, and uniform services provider were acquired by 2 insiders:
You can view the list of recent insider transactions for Aramark here.
P/E: 14.32 | Forward P/E: 11.93 | Industry P/E: 58.76 |
P/S: 0.5 | Price/Book: 2.61 | EV/EBITDA: 10.67 |
Market Cap: $7.92B | Avg. Daily Volume: 3,295,723 | 52 Week Range: $30.78 – $46.09 |
You can view the full list of purchases from this Insider Buying page.
Notable Insider Sales:
1. Walmart Inc. (WMT): $91.85
Director Robson S. Walton sold 1,573,840 shares of Walmart for $93.81, generating $147.63 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: 52.46 | Forward P/E: 19.46 | Industry P/E: 38.01 |
P/S: 0.52 | Price/Book: 3.72 | EV/EBITDA: 10.05 |
Market Cap: $266.85B | Avg. Daily Volume: 8,618,746 | 52 Week Range: $81.78 – $109.98 |
2. Workday, Inc. (WDAY): $162.03
Shares of this software application company were sold by 2 insiders:
You can view the list of recent insider transactions for Workday, Inc. here.
P/E: N/A | Forward P/E: 100.64 | Industry P/E: 39.5 |
P/S: 13.5 | Price/Book: 19.27 | EV/EBITDA: -160.04 |
Market Cap: $35.32B | Avg. Daily Volume: 2,299,064 | 52 Week Range: $100.24 – $172.67 |
3. Twitter, Inc. (TWTR): $35.87
Shares of Twitter were sold by 2 insiders:
You can view the list of recent insider transactions for Twitter, Inc. here.
P/E: 26.45 | Forward P/E: 40.3 | Industry P/E: 25.67 |
P/S: 9.5 | Price/Book: 4.21 | EV/EBITDA: 35.54 |
Market Cap: $27.22B | Avg. Daily Volume: 26,252,670 | 52 Week Range: $22.04 – $47.79 |
4. Inspire Medical Systems, Inc. (INSP): $41.36
Shares of this medical company were sold by 4 insiders:
You can view the list of recent insider transactions for Inspire Medical Systems, Inc. here.
P/E: N/A | Forward P/E: -31.57 | Industry P/E: 30.69 |
P/S: N/A | Price/Book: N/A | EV/EBITDA: N/A |
Market Cap: $885.12M | Avg. Daily Volume: 205,690 | 52 Week Range: $22.5 – $57.874 |
5. CarGurus, Inc. (CARG): $34.76
Shares of this online auto shopping company were sold by 4 insiders:
You can view the list of recent insider transactions for CarGurus, Inc. here.
P/E: 76.9 | Forward P/E: 93.95 | Industry P/E: 25.67 |
P/S: 9.14 | Price/Book: 22.43 | EV/EBITDA: 271.49 |
Market Cap: $3.83B | Avg. Daily Volume: 1,015,549 | 52 Week Range: $28.52 – $57.25 |
You can view the full list of sales from this Insider Sales page.
Disclaimer: I hold a long positions in ETM, WDAY and 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.
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