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Welcome to edition 458 of Insider Weekends. Insider buying increased last week with insiders purchasing $79.08 million of stock compared to $53.36 million in the week prior. This increase in insider buying was mostly driven by a trio of insider purchases in the energy sector as discussed below. Selling also increased with insiders selling $1.87 billion of stock last week compared to $1.58 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 23.66. In other words, insiders sold almost 24 times as much stock as they purchased. The Sell/Buy ratio this week compares favorably with the prior week, when the ratio stood at 29.56.
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. Continental Resources, Inc. (CLR): $44.77
CEO & Chairman Harold Hamm acquired 791,828 shares of this oil & gas company, paying $42.95 per share for a total amount of $34 million. Mr. Hamm increased his direct stake by 30.15% to 3.42 million shares with this purchase. He indirectly owns an additional 283.12 million shares through a family LLC.