Insider Weekends: Two Insiders Of Bunge Purchase Shares

Welcome to edition 505 of Insider Weekends. Insider buying decreased significantly last week with insiders purchasing $39.19 million of stock compared to $100.09 million in the week prior. Selling increased with insiders selling $1.83 billion of stock last week compared to $1.22 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 46.59. In other words, insiders sold almost 47 times as much stock as they purchased. The Sell/Buy ratio this week compares unfavorably with the prior week, when the ratio stood at 12.16. 

Insider Sector Heat Map February 21, 2020

Insider Sector Heat Map February 21, 2020

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): $25.95

Director Randa Duncan Williams acquired 200,000 shares of this oil and gas midstream company, paying $25.98 per share for a total amount of $5.19 million. These shares were purchased indirectly through various trusts.

You can view the list of recent insider transactions for Enterprise Products Partners L.P. here.

P/E: 12.45 Forward P/E: 11.33 Industry P/E: 15.00
P/S: 1.73 Price/Book: 2.32 EV/EBITDA: 11.19
Market Cap: $56.81B Avg. Daily Volume: 5,674,140 52 Week Range: $25.04 – $30.87

2. Bunge Limited (BG): $53.23

Shares of this agribusiness and food company were acquired by 2 insiders:

  • EVP and Chief Legal Officer Joseph Podwika acquired 15,000 shares, paying $53.47 per share for a total amount of $802,020.
  • EVP, Chief Financial Officer John W. Neppl acquired 10,000 shares, paying $53.85 per share for a total amount of $538,538. Mr. Neppl increased his stake by 70.12% to 24,262 shares with this purchase.

Insider purchases by the CFO or the Chief Legal Officer usually pique my interest and when I see both of them buying, I pay attention. Looking through the management of the company, I was struck by the fact that most of them joined the company in 2019.

It appears that after the company brought in Gregory Heckman as their interim CEO in January 2019 and then made him the permanent CEO in April 2019, he brought in an entirely new management team into the company. Both Mr. Heckman and the CFO Mr. Neppl were former executives at ConAgra Foods. The change was much needed has Bunge’s stock is down 35% over the last 5 years even as the S&P 500 rose 59%. Revenue has declined for six quarters in a row although to the credit of the new management team, earnings have improved in 2019.

This 202 year old company is the world leader in oilseeds (soybeans, sunflower, etc.) processes and its businesses range from grains to sugar. The company has a presence in North America, Europe, Brazil, Argentina, India and China.  The company was reviewing strategic alternatives last year and it is possible the insiders see a silver lining at Bunge that may not be readily evident to investors who have probably given up on the company after years of underperformance.

You can view the list of recent insider transactions for Bunge Limited here.

P/E: N/A Forward P/E: 12.02 Industry P/E: 27.79
P/S: 0.18 Price/Book: 1.25 EV/EBITDA: -497.92
Market Cap: $7.54B Avg. Daily Volume: 903,467 52 Week Range: $47.26 – $59.65

3. Affiliated Managers Group, Inc. (AMG): $88.78

Shares of this asset management company were acquired by 2 insiders:

  • President and CEO Jay C. Horgen acquired 10,000 shares, paying $83.13 per share for a total amount of $831,300. Mr. Horgen increased his stake by 9.29% to 117,662 shares with this purchase.
  • Director Dwight D. Churchill acquired 2,500 shares, paying $87.67 per share for a total amount of $219,175. Mr. Churchill increased his stake by 44.89% to 8,069 shares with this purchase.

You can view the list of recent insider transactions for Affiliated Managers Group, Inc. here.

P/E: 286.39 Forward P/E: 5.83 Industry P/E: 17.66
P/S: 1.95 Price/Book: 1.48 EV/EBITDA: 8.6
Market Cap: $4.37B Avg. Daily Volume: 726,844 52 Week Range: $71.08 – $115.75

4. Moderna, Inc. (MRNA): $18.23

Director Paul Sagan acquired 52,631 shares of this biotech company, paying $19.00 per share for a total amount of $999,989. These shares were purchased indirectly through a trust.

Mr. Sagan was previously the President and CEO of Akamai (AKAM). He joined Moderna’s board in 2018.

You can view the list of recent insider transactions for Moderna, Inc. here.

P/E: N/A Forward P/E: -11.32 Industry P/E: 243.09
P/S: 75.21 Price/Book: 4.84 EV/EBITDA: -9.35
Market Cap: $6.14B Avg. Daily Volume: 3,374,288 52 Week Range: $11.54 – $29.79

5. NextEra Energy, Inc. (NEE): $277.59

Director David L. Porges acquired 3,000 shares of this electric utility, paying $275.50 per share for a total amount of $826,500. Mr. Porges increased his stake by 458.02% to 3,655 shares with this purchase.

You can view the list of recent insider transactions for NextEra Energy, Inc. here.

P/E: 35.77 Forward P/E: 28.15 Industry P/E: 27.15
P/S: 7.07 Price/Book: 3.67 EV/EBITDA: 18.35
Market Cap: $135.73B Avg. Daily Volume: 2,002,552 52 Week Range: $186.06 – $283.35

You can view the full list of purchases from this Insider Buying page.

Notable Insider Sales:

1. IDEXX Laboratories, Inc. (IDXX): $278.11

Shares of this veterinary diagnostic company were sold by 3 insiders:

  • Director Jonathan W. Ayers sold 79,143 shares for $290.19, generating $22.97 million from the sale.
  • Director Anne M. Szostak sold 8,790 shares for $286.29, generating $2.52 million from the sale. These shares were sold as a result of exercising options immediately prior to the sale.
  • Director Sophie V. Vandebroek sold 7,568 shares for $286.89, generating $2.17 million from the sale. These shares were sold as a result of exercising options immediately prior to the sale.

You can view the list of recent insider transactions for IDEXX Laboratories, Inc. here.

P/E: 56.87 Forward P/E: 44.14 Industry P/E: 47.45
P/S: 9.86 Price/Book: 133.96 EV/EBITDA: 38.56
Market Cap: $23.73B Avg. Daily Volume: 483,962 52 Week Range: $198.75 – $296.25

2. BlackRock, Inc. (BLK): $557

Shares of this asset management company were sold by 2 insiders:

  • Chairman and CEO Laurence Fink sold 44,300 shares for $565.35, generating $25.05 million from the sale.
  • CFO & Senior Managing Director Gary Shedlin sold 4,000 shares for $571.49, generating $2.29 million from the sale.

You can view the list of recent insider transactions for BlackRock, Inc. here.

P/E: 19.59 Forward P/E: 16.14 Industry P/E: 17.66
P/S: 5.95 Price/Book: 2.67 EV/EBITDA: 14.52
Market Cap: $86.52B Avg. Daily Volume: 531,960 52 Week Range: $403.54 – $576.81

3. Shake Shack Inc. (SHAK): $74.8

Director Jonathan D. Sokoloff sold 329,395 shares of this restaurant chain for $73.76, generating $24.29 million from the sale. These shares were sold indirectly by Green Equity Investors Side VI, L.P.

You can view the list of recent insider transactions for Shake Shack Inc. here.

P/E: 110.65 Forward P/E: 124.67 Industry P/E: 25.66
P/S: 4.95 Price/Book: 8.66 EV/EBITDA: 39.9
Market Cap: $2.81B Avg. Daily Volume: 1,636,993 52 Week Range: $49.28 – $105.84

4. MGM Resorts International (MGM): $31.39

Chairman & CEO James Murren sold 689,000 shares of this resorts & casinos company for $32.16, generating $22.16 million from the sale. These shares were sold indirectly by various trusts.

You can view the list of recent insider transactions for MGM Resorts International here.

P/E: 8.09 Forward P/E: 23.96 Industry P/E: 25.66
P/S: 1.27 Price/Book: 2.04 EV/EBITDA: 12.41
Market Cap: $15.79B Avg. Daily Volume: 5,137,836 52 Week Range: $23.68 – $34.64

5. Uber Technologies, Inc. (UBER): $40.72

Director Garrett Camp sold 510,000 shares of Uber for $40.44, generating $20.62 million from the sale. These shares were sold indirectly by Expa-1, LLC.

You can view the list of recent insider transactions for Uber Technologies, Inc. here.

P/E: N/A Forward P/E: -32.32 Industry P/E: 44.25
P/S: 4.94 Price/Book: 4.93 EV/EBITDA: -8.25
Market Cap: $69.9B Avg. Daily Volume: 29,757,688 52 Week Range: $25.58 – $47.08

You can view the full list of sales from this Insider Sales page.

The list of all insider purchases and sales by management people is only available to InsideArbitrage Premium members.

Disclaimer: 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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