Insider Weekends: CEO and CFO of Medtronic Buy Shares

Welcome to edition 447 of Insider Weekends. Insider buying declined once again last week with insiders purchasing $15.32 million million of stock compared to $29.77 million in the week prior. Selling on the other hand more than doubled with insiders selling $740.97 million of stock last week compared to $349.6 million 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 went up to 48.37. In other words, insiders sold more than 48 times as much stock as they purchased. The Sell/Buy ratio this week compares unfavorably with the prior week, when the ratio stood at 11.75. 

Insider Sector Heat Map January 11, 2019

Insider Sector Heat Map January 11, 2019 (click to enlarge)

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. La Jolla Pharmaceutical Company (LJPC): $6.55

Shares of this biotech company were acquired by 4 insiders:

  • Director Kevin C. Tang acquired 1,300,000 shares, paying $5.37 per share for a total amount of $6.99 million. These shares were purchased indirectly by Tang Capital Partners, LP.
  • Chief Operating Officer Jennifer Carver acquired 5,000 shares, paying $6.17 per share for a total amount of $30,825. Ms. Carver increased her stake by 70.26% to 12,116 shares with this purchase.
  • President, CEO & Secretary George F. Tidmarsh acquired 2,000 shares, paying $5.85 per share for a total amount of $11,700. Mr. Tidmarsh increased his stake by 0.16% to 1,283,326 shares with this purchase.
  • Chief Scientific Officer James Rolke acquired 1,600 shares, paying $6.09 per share for a total amount of $9,746. Mr. Rolke increased his stake by 2.14% to 76,330 shares with this purchase.

You can view the list of recent insider transactions for La Jolla Pharmaceutical Company here.

P/E: N/A Forward P/E: -1.15 Industry P/E: 95.96
P/S: 29.26 Price/Book: 2.51 EV/EBITDA: -1.03
Market Cap: $171.83M Avg. Daily Volume: 773,008 52 Week Range: $5.01 – $41.36

2. Medtronic plc (MDT): $84.84

Shares of this medical devices company were acquired by 2 insiders:

  • Chairman & CEO Omar Ishrak acquired 12,000 shares, paying $84.04 per share for a total amount of $1.01 million. Mr. Ishrak increased his stake by 2.15% to 570,722 shares with this purchase.
  • EVP & Chief Financial Officer Karen L. Parkhill acquired 3,000 shares, paying $83.87 per share for a total amount of $251,610. Ms. Parkhill increased her stake by 3.72% to 83,680 shares with this purchase.

This is the first purchase by the CEO since he joined the company in June 2011 from GE Healthcare. This is also the first open market purchase by the CFO since she joined the company in June 2016.

You can view the list of recent insider transactions for Medtronic plc here.

P/E: 53.22 Forward P/E: 15.34 Industry P/E: 32.17
P/S: 3.75 Price/Book: 2.3 EV/EBITDA: 13.94
Market Cap: $113.94B Avg. Daily Volume: 6,068,683 52 Week Range: $76.41 – $100.15

3. Compass Diversified Holdings LLC (CODI): $14.9

Shares of this private equity firm were purchased by two insiders:

  • Chairman of the Board of Directors Sean C. Day acquired 8,972 shares, paying $13.30 per share for a total amount of $119.328.
  • Director James Bottiglieri acquired 7,473 shares, paying $13.31 per share for a total amount of $99,466.

You can view the list of recent insider transactions for Compass Diversified Holdings LLC here.

P/E: 39.73 Forward P/E: 7.97 Industry P/E: 5.52
P/S: 0.56 Price/Book: 1.27 EV/EBITDA: 10.35
Market Cap: $892.51M Avg. Daily Volume: 281,886 52 Week Range: $11.6 – $18.35

4. DISH Network Corporation (DISH): $28.15

Executive Vice President James DeFranco acquired 25,000 shares of DISH Network, paying $28.38 per share for a total amount of $709,550. Mr. DeFranco increased his stake by 1.78% to 1,428,529 shares with this purchase.

Mr. DeFranco has been consistently buying stock since last June and we wrote the following about his purchases last October,

Mr. DeFranco’s purchases of DISH are interesting because he has purchased shares in four of the last five months. While the purchases have not been large, he is buying under an established 10b5-1 trading plan and is likely to continue buying. His prior transactions were options related sales in 2014 and 2015 when the stock was trading in the mid to high $70s.

He has increased the size of his purchases this year after a drop in the stock over the last few weeks. Mr. DeFranco is a co-founder of DISH Network and probably sees value in the company’s wireless spectrum assets. The core business continues to decline in this era of cord cutting and the balance sheet is leveraged.

You can view the list of recent insider transactions for DISH Network Corporation here.

P/E: 5.65 Forward P/E: 11.4 Industry P/E: 24.34
P/S: 0.95 Price/Book: 1.6 EV/EBITDA: 9.04
Market Cap: $13.17B Avg. Daily Volume: 3,343,593 52 Week Range: $23.22 – $49.71

5. Landec Corporation (LNDC): $11.67

Shares of this health and wellness products company were acquired by 3 insiders:

  • Chief Financial Officer Gregory S. Skinner acquired 25,000 shares, paying $11.25 per share for a total amount of $281,250. Mr. Skinner increased his stake by 9.50% to 288,036 shares with this purchase.
  • Director Steven D. Goldby acquired 20,000 shares, paying $11.24 per share for a total amount of $224,800. Mr. Goldby increased his stake by 43.02% to 66,490 shares with this purchase.
  • Director Catherine A. Sohn acquired 1,000 shares, paying $11.23 per share for a total amount of $11,230. Ms. Sohn increased her stake by 4.15% to 25,091 shares with this purchase.

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

P/E: 14.9 Forward P/E: 24.31 Industry P/E: 22.41
P/S: 0.64 Price/Book: 1.28 EV/EBITDA: 14.4
Market Cap: $340.42M Avg. Daily Volume: 68,619 52 Week Range: $10.17 – $15.6

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

Notable Insider Sales:

1. Workday, Inc. (WDAY): $167.46

Shares of this application software company were sold by 2 insiders:

  • Director David A. Duffield sold 304,404 shares for $164.29, generating $50.01 million from the sale.
  • COO & Executive Vice President James Bozzini sold 32,250 shares for $167.40, generating $5.39 million from the sale.

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

P/E: N/A Forward P/E: 104.01 Industry P/E: 34.47
P/S: 13.95 Price/Book: 19.91 EV/EBITDA: -155.04
Market Cap: $36.51B Avg. Daily Volume: 2,451,475 52 Week Range: $107.75 – $172.67

2. Everbridge, Inc. (EVBG): $56.98

Shares of this software application company were sold by 3 insiders:

  • CEO & Chairman Jaime Wallace Ellertson sold 450,000 shares for $56.03, generating $25.21 million from the sale.
  • SVP, CFO and Treasurer Kenneth S. Goldman sold 10,326 shares for $54.28, generating $560,540 from the sale.
  • SVP & General Counsel Elliot J. Mark sold 6,000 shares for $53.04, generating $318,255 from the sale.

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

P/E: N/A Forward P/E: -167.59 Industry P/E: 39.5
P/S: 12.57 Price/Book: 35.37 EV/EBITDA: -48.64
Market Cap: $1.69B Avg. Daily Volume: 424,440 52 Week Range: $29.56 – $63

3. CarGurus, Inc. (CARG): $36.02

Shares of this online auto shopping provider were sold by 2 insiders:

  • CEO, President and Chairman Langley Steinert sold 247,862 shares for $34.47, generating $8.54 million from the sale. 13,047 of these shares were sold indirectly through a trust.
  • Chief Technology Officer Oliver Ian Chrzan sold 20,000 shares for $35.84, generating $716,800 from the sale.

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

P/E: 79.69 Forward P/E: 97.35 Industry P/E: 36.64
P/S: 9.47 Price/Book: 23.24 EV/EBITDA: 254.49
Market Cap: $3.97B Avg. Daily Volume: 803,488 52 Week Range: $28.52 – $57.25

4. Facebook, Inc. (FB): $143.8

Chief Operating Officer Sheryl Sandberg sold 55,000 shares of Facebook for $141.66, generating $7.79 million from the sale. These shares were sold indirectly through a trust.

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

P/E: 21.67 Forward P/E: 19.3 Industry P/E: 25.67
P/S: 7.96 Price/Book: 5.14 EV/EBITDA: 12.06
Market Cap: $413.25B Avg. Daily Volume: 25,896,059 52 Week Range: $123.02 – $218.62

5. LHC Group, Inc. (LHCG): $97.61

CEO and Chairman Keith G. Myers sold 75,000 shares of this post-acute health care services provider for $95.07, generating $7.13 million from the sale. 50,000 of these shares were sold indirectly by K&G Family, LLC.

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

P/E: 39.03 Forward P/E: 23.35 Industry P/E: 38.02
P/S: 1.92 Price/Book: 2.31 EV/EBITDA: 24.41
Market Cap: $3.06B Avg. Daily Volume: 296,829 52 Week Range: $58.65 – $107.51

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 members.

Disclaimer: I hold a long position in Workday (WDAY). 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.

Connect with me on LinkedIn: http://www.linkedin.com/in/asifsuria or follow me on Twitter @asifsuria

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