Insider Weekends: A Third Insider Of MultiPlan Purchases Shares

Welcome to edition 545 of Insider Weekends. Insider buying decreased last week with insiders purchasing $82.04 million of stock compared to $84.63 million in the week prior. Selling increased with insiders selling $2.81 billion of stock last week compared to $2.56 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 34.2. In other words, insiders sold more than 34 times as much stock as they purchased. The Sell/Buy ratio this week compares unfavorably with the prior week, when the ratio stood at 30.25.

Insider Sector Heat Map December 4, 2020

Insider Sector Heat Map December 4, 2020 (click to enlarge)

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. HC2 Holdings, Inc. (HCHC): $3.46

Chairman of the Board Avram A. Glazer acquired 2,600,000 shares of this construction and engineering company, paying $3.45 per share for a total amount of $8.96 million. These shares were purchased indirectly by Lancer Capital.

You can view the list of recent insider transactions for HC2 Holdings, Inc. here.

P/E: N/A Forward P/E: -2.93 Industry P/E: N/A
P/S: 0.14 Price/Book: 0.44 EV/EBITDA: 16.92
Market Cap: $264.99M Avg. Daily Volume: 383,179 52 Week Range: $1.29 – $4.33

2. MultiPlan Corporation (MPLN): $7.59

Director Glenn R. August acquired 826,265 shares of this healthcare plans company, paying $7.00 per share for a total amount of $5.78 million. These shares were purchased indirectly by Oak Hill Advisors, L.P.

It is interesting to see a third insider of MultiPlan purchase shares. We wrote the following two weeks ago after a director Michael Klein purchased shares:

Mr. Klein also purchased $4.89 million worth of stock in the week prior and I tweeted the following after his purchase:

MultiPlan Insider Purchase

MultiPlan Insider Purchase

Mr. Klein was previously the Vice Chairman of Citigroup (C) and then started a strategic advisory firm called M. Klein & Company, which was profiled by Reuters in an article titled Wall Street rainmaker Michael Klein no longer a one-man show. He has also launched a series of special purpose acquisition companies or SPACs in recent years, which have merged with various operating businesses including a data analytics company Clarivate (CCC) and MultiPlan (MPLN).

You can view the list of recent insider transactions for MultiPlan Corporation here.

P/E: N/A Forward P/E: N/A Industry P/E: N/A
P/S: 5.68 Price/Book: N/A EV/EBITDA: N/A
Market Cap: $5.27B Avg. Daily Volume: 4,543,077 52 Week Range: $6.12 – $10.47

3. The Kraft Heinz Company (KHC): $34.12

Director Elio Leoni Sceti acquired 90,000 shares of this food and beverage products company, paying $33.22 per share for a total amount of $2.99 million. These shares were purchased indirectly through a trust.

You can view the list of recent insider transactions for The Kraft Heinz Company here.

P/E: N/A Forward P/E: 13.59 Industry P/E: 24.64
P/S: 1.62 Price/Book: 0.85 EV/EBITDA: 10.18
Market Cap: $41.72B Avg. Daily Volume: 6,594,369 52 Week Range: $19.99 – $36.369

4. American Assets Trust, Inc. (AAT): $31.08

Chairman, CEO & President Ernest S. Rady acquired 50,089 shares of this diversified REIT, paying $28.99 per share for a total amount of $1.45 million. These shares were purchased indirectly by American Assets, Inc.

We wrote the following about AAT last month and with the stock up nearly 45% in the last month, the dividend yield has come down and now stands at 3.22%.

Mr. Rady has been an active buyer of American Assets Trust stock all of this year but significantly stepped up his purchases last week. American Assets Trust has a diversified portfolio mix of office, retail and multi-family properties. With the recent drop in the stock, the dividend yield is now up to 4.77% with a payout ratio of 50.71%. Unlike other retail REITs, AAT’s revenue and funds from operations (FFO) did not take a dramatic hit from the pandemic with revenue down just 2.4% in Q2 and down 14.22% in Q3 2020.

You can view the list of recent insider transactions for American Assets Trust, Inc. here.

P/E: 49.41 Forward P/E: 43.17 Industry P/E: 56.79
P/S: 5.22 Price/Book: 1.46 EV/EBITDA: 15.11
Market Cap: $1.87B Avg. Daily Volume: 344,211 52 Week Range: $20.15 – $48.15

5. Maravai LifeSciences Holdings, Inc. (MRVI): $27.62

Chief Executive Officer Carl Hull acquired 35,000 shares of this biotech company, paying $26.94 per share for a total amount of $942,900. These shares were purchased indirectly through Glossatori, LLC.

You can view the list of recent insider transactions for Maravai LifeSciences Holdings, Inc. here.

P/E: N/A Forward P/E: N/A Industry P/E: N/A
P/S: 49.71 Price/Book: N/A EV/EBITDA: N/A
Market Cap: $7.12B Avg. Daily Volume: 3,995,130 52 Week Range: $25.56 – $32.46

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

Notable Insider Sales:

1. Walmart Inc. (WMT): $148.91

Director Robson S. Walton sold 1,100,000 shares of Walmart for $151.49, generating $166.63 million from the sale. These shares were sold indirectly through a trust.

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

P/E: 21.49 Forward P/E: 25.85 Industry P/E: 21.21
P/S: 0.77 Price/Book: 5.18 EV/EBITDA: 12.68
Market Cap: $421.31B Avg. Daily Volume: 7,721,533 52 Week Range: $102 – $153.66

2. Facebook, Inc. (FB): $279.7

Shares of Facebook were sold by 3 insiders:

  • COB and CEO Mark Zuckerberg sold 311,250 shares for $279.85, generating $87.1 million from the sale. These shares were sold indirectly through a trust.
  • Chief Revenue Officer David B. Fischer sold 13,118 shares for $276.02, generating $3.62 million from the sale.
  • VP and General Counsel Jennifer Newstead sold 310 shares for $279.16, generating $86,540 from the sale.

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

P/E: 31.86 Forward P/E: 26.71 Industry P/E: 43.04
P/S: 10.09 Price/Book: 6.77 EV/EBITDA: 25.09
Market Cap: $796.67B Avg. Daily Volume: 20,120,923 52 Week Range: $137.1 – $304.67

3. The Boston Beer Company, Inc. (SAM): $934.98

Chairman James C. Koch sold 42,500 shares of this beverage company for $923.14, generating $39.23 million from the sale. 2,500 of 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 The Boston Beer Company, Inc. here.

P/E: 66.58 Forward P/E: 40.86 Industry P/E: 42.96
P/S: 7.26 Price/Book: 12.28 EV/EBITDA: 37.62
Market Cap: $11.45B Avg. Daily Volume: 129,457 52 Week Range: $290.02 – $1092.8

4. Palo Alto Networks, Inc. (PANW): $304.29

Shares of this cybersecurity platform solutions provider were sold by 2 insiders:

  • Director Mark D. McLaughlin sold 80,000 shares for $294.43, generating $23.55 million from the sale. These shares were sold indirectly through a trust.
  • EVP, Chief Technology Officer Nir Zuk sold 12,000 shares for $293.89, generating $3.53 million from the sale.

You can view the list of recent insider transactions for Palo Alto Networks, Inc. here.

P/E: N/A Forward P/E: 44.16 Industry P/E: 58.08
P/S: 8.09 Price/Book: 38.78 EV/EBITDA: 966.8
Market Cap: $28.97B Avg. Daily Volume: 1,036,915 52 Week Range: $125.47 – $306

5. Dollar Tree, Inc. (DLTR): $112.51

Shares of Dollar Tree were sold by 2 insiders:

  • Director Thomas A. Saunders sold 187,948 shares for $111.93, generating $21.04 million from the sale.
  • Chief Operating Officer Thomas O’Boyle Jr. sold 1,111 shares for $111.86, generating $124,282 from the sale.

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

P/E: 27.79 Forward P/E: 18.18 Industry P/E: 65.73
P/S: 1.06 Price/Book: 3.8 EV/EBITDA: 12.94
Market Cap: $26.46B Avg. Daily Volume: 1,964,023 52 Week Range: $60.2 – $114.32

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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