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Insider Weekends: Cluster Of Insider Purchases By Directors Of IBM

  • November 1, 2020

Welcome to edition 540 of Insider Weekends. Insider buying more than doubled last week with insiders purchasing $132.96 million of stock compared to $53.28 million in the week prior. Selling also increased with insiders selling $1.17 billion of stock last week compared to $884.13 million in the week prior.

We are currently working on the November 2020 newsletter for premium subscribers that it due out later today and hence I am going to keep this insider weekends post short on commentary.

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 8.82. In other words, insiders sold almost 9 times as much stock as they purchased. The Sell/Buy ratio this week compares favorably with the prior week, when the ratio stood at 16.59.

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. Live Oak Bancshares, Inc. (LOB): $37.28

Chief Executive Officer James S. Mahan acquired 154,384 shares of this regional bank, paying $34.18 per share for a total amount of $5.28 million. These shares were purchased indirectly through a trust.

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