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.
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:
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:
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:
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:
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:
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:
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:
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.
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.
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