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Insider Weekends: Harold Hamm Makes His Largest Purchase Since 2010

  • March 3, 2019

Welcome to edition 454 of Insider Weekends. Insider buying increased significantly last week with insiders purchasing $314.42 million of stock compared to $53.99 million in the week prior. A majority of this increase in insider buying was related to John Paulson acquiring a large stake in BrightSphere as discussed below. Selling also increased with insiders selling $2.09 billion of stock last week compared to $1.86 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 6.65. In other words, insiders sold almost 7 times as much stock as they purchased. The Sell/Buy ratio this week compares favorably with the prior week, when the ratio stood at 34.43. 

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. BrightSphere Investment Group plc (BSIG): $14.14

Director John Paulson acquired 14,790,038 shares of this asset management company, paying $13.95 per share for a total amount of $206.32 million. These shares were purchased indirectly by Paulson & Co. Inc.

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