Welcome to edition 496 of Insider Weekends. Insider buying increased with insiders purchasing $70.81 million of stock last week compared to $60.21 million in the week prior. Selling on the other hand decreased with insiders selling $1.88 billion of stock last week compared to $2.18 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 26.52. In other words, insiders sold almost 27 times as much stock as they purchased. The Sell/Buy ratio this week compares favorably with the prior week, when the ratio stood at 36.25.
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. Enterprise Products Partners L.P. (EPD): $28.13
Chairman of the Board Randa Duncan Williams acquired 502,796 units of this oil & gas midstream company, paying $27.69 per share for a total amount of $13.93 million. These shares were purchased indirectly through a trust.
This is the third week in a row Ms. Williams has purchased units of Enterprise Products Partners. Her purchases this month have totaled $49.44 million. While these purchases are large, they represent less than 1% of Ms. William’s estimated net worth of $6.6 billion. She is one of the four children of Dan Duncan who co-founded Enterprise Product Partners in 1968 with $10,000 and two fuel trucks.
She joined Enterprise Products in 1994 after practicing law for six years and previously served as President and CEO of the company. She has been the non-executive Chairman of the Board since 2013. I wrote the following in a premium blog post a couple of weeks ago,
Over the last several weeks we have seen very consistent insider buying by insiders of midstream energy companies. Most of these purchases have been by insiders that have been with their companies for decades or were founders of those companies. What is remarkable is not just the size of the purchases but also the frequency of these purchases.
You can view the list of recent insider transactions for Enterprise Products Partners L.P. here.
P/E: 12.95 | Forward P/E: 12.67 | Industry P/E: 14.12 |
P/S: 1.81 | Price/Book: 2.51 | EV/EBITDA: 11.6 |
Market Cap: $61.58B | Avg. Daily Volume: 5,160,798 | 52 Week Range: $23.33 – $30.87 |
2. The Children’s Place, Inc. (PLCE): $63.08
Shares of this apparel retail company were acquired by 4 insiders:
In the world of retail and especially the niche that focuses on children’s apparel, Children’s Place has stood out for managing its business well even as competitors like Gymboree went private and eventually bankrupt. I have had the stock on my watch list for nearly a decade and never purchased shares even as the stock rose from around $25 all the way to $160 in October 2018.
The stock has been hit hard after revenue growth turned negative in three of the last four quarters. Even though comparable same store sales went up 0.8% in fiscal Q3, their weak holiday forecast sent the stock down more than 23% on December 11th. The CEO and CFO purchased shares two days later and the directors purchased shares on December 16th. Ms. Elfers has been the CEO of Children’s Place since 2010 and Mr. Scarpa has been the CFO since 2012. The last time we saw insider buying in Children’s Place was in 2012.
It is possible that this weakness is temporary and Children’s Place will turn a corner soon but I would wait to see the signs of the turnaround instead of anticipating it in advance. Like value investors, insiders tend to be early and often buy shares after large one day declines in the stock.
You can view the list of recent insider transactions for The Children’s Place, Inc. here.
P/E: 16.46 | Forward P/E: 9.86 | Industry P/E: 24.22 |
P/S: 0.5 | Price/Book: 3.78 | EV/EBITDA: 9.8 |
Market Cap: $950.29M | Avg. Daily Volume: 894,270 | 52 Week Range: $53.62 – $116.84 |
3. Agree Realty Corporation (ADC): $68.29
Shares of this retail REIT were acquired by 4 insiders:
You can view the list of recent insider transactions for Agree Realty Corporation here.
P/E: 37.9 | Forward P/E: 37.52 | Industry P/E: 37.03 |
P/S: 15.73 | Price/Book: 1.94 | EV/EBITDA: 25.61 |
Market Cap: $2.9B | Avg. Daily Volume: 312,293 | 52 Week Range: $56.46 – $79.54 |
4. FedEx Corporation (FDX): $148.12
Director John A. Edwardson acquired 10,000 shares of FedEx, paying $148.22 per share for a total amount of $1.48 million. Mr. Edwardson increased his stake by 14.71% to 77,966 shares with this purchase.
You can view the list of recent insider transactions for FedEx Corporation here.
P/E: 544.56 | Forward P/E: 11.58 | Industry P/E: 24.90 |
P/S: 0.56 | Price/Book: 2.07 | EV/EBITDA: 15.68 |
Market Cap: $38.68B | Avg. Daily Volume: 2,852,904 | 52 Week Range: $137.78 – $199.32 |
5. Energy Transfer LP (ET): $13.07
Director Richard D. Brannon acquired 100,000 shares of this oil & gas midstream company, paying $12.79 per share for a total amount of $1.28 million. Mr. Brannon increased his stake by 52.93% to 288,932 shares with this purchase.
You can view the list of recent insider transactions for Energy Transfer LP here.
P/E: 10.5 | Forward P/E: 8.49 | Industry P/E: 14.12 |
P/S: 0.65 | Price/Book: 1.64 | EV/EBITDA: 8.87 |
Market Cap: $35.09B | Avg. Daily Volume: 16,331,562 | 52 Week Range: $10.84 – $15.98 |
You can view the full list of purchases from this Insider Buying page.
Notable Insider Sales:
1. Uber Technologies, Inc. (UBER): $30.45
Shares of Uber were sold by 3 insiders:
You can view the list of recent insider transactions for Uber Technologies, Inc. here.
P/E: N/A | Forward P/E: -13.01 | Industry P/E: 38.68 |
P/S: 3.98 | Price/Book: 3.44 | EV/EBITDA: -5.97 |
Market Cap: $51.94B | Avg. Daily Volume: 24,744,714 | 52 Week Range: $25.58 – $47.08 |
2. Continental Resources, Inc. (CLR): $33.72
CEO & Chairman Harold Hamm sold 1,779,496 shares of this oil & gas exploration company for $33.87, generating $60,278,170 from the sale.
You can view the list of recent insider transactions for Continental Resources, Inc. here.
P/E: 16.13 | Forward P/E: 15.12 | Industry P/E: N/A |
P/S: 2.99 | Price/Book: 1.9 | EV/EBITDA: 5.47 |
Market Cap: $12.52B | Avg. Daily Volume: 2,635,578 | 52 Week Range: $27.26 – $52.04 |
3. salesforce.com, inc. (CRM): $164.55
Shares of this software application company were sold by 7 insiders:
You can view the list of recent insider transactions for salesforce.com, inc. here.
P/E: 136.67 | Forward P/E: 53.08 | Industry P/E: 45.17 |
P/S: 9.8 | Price/Book: 7.48 | EV/EBITDA: 69.35 |
Market Cap: $144.31B | Avg. Daily Volume: 4,826,992 | 52 Week Range: $120.16 – $167.56 |
4. Workday, Inc. (WDAY): $167.16
Shares of this software application company were sold by 3 insiders:
You can view the list of recent insider transactions for Workday, Inc. here.
P/E: N/A | Forward P/E: 76.33 | Industry P/E: 45.17 |
P/S: 11.18 | Price/Book: 16.58 | EV/EBITDA: -198.77 |
Market Cap: $38.45B | Avg. Daily Volume: 2,176,007 | 52 Week Range: $141.7 – $226.83 |
5. Intuit Inc. (INTU): $267.1
Chairman of Exec. Committee Scott D. Cook sold 112,022 shares of this software application company for $266.16, generating $29.82 million from the sale. These shares were sold indirectly by a trust.
You can view the list of recent insider transactions for Intuit Inc. here.
P/E: 44.67 | Forward P/E: 31.28 | Industry P/E: 45.17 |
P/S: 10.03 | Price/Book: 19.14 | EV/EBITDA: 32.75 |
Market Cap: $69.53B | Avg. Daily Volume: 1,353,114 | 52 Week Range: $182.61 – $295.77 |
You can view the full list of sales from this Insider Sales page.
Disclaimer: I hold a long position in 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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