Welcome to edition 494 of Insider Weekends. Insider buying decreased last week with insiders purchasing $73.75 million of stock last week compared to $76.94 million in the week prior. Selling on the other hand increased with insiders selling $1.87 billion of stock last week compared to $1.57 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 went up to 25.42. In other words, insiders sold more than 25 times as much stock as they purchased. The Sell/Buy ratio this week compares unfavorably with the prior week, when the ratio stood at 20.41.
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): $26.25
Chairman of the Board, Randa Duncan Williams acquired 725,660 units of this oil & gas midstream company, paying $25.92 per share for a total amount of $18.81 million. These units were purchased indirectly by various trusts.