Welcome to edition 555 of Insider Weekends. Insider buying increased significantly last week with insiders purchasing $97.58 million of stock purchased compared to $30.66 million in the week prior. Selling also increased significantly with insiders selling $3.45 billion of stock last week compared to $1.17 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 35.38. In other words, insiders sold more than 35 times as much stock as they purchased. The Sell/Buy ratio this week compares favorably with the prior week, when the ratio stood at 71.42.
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. The Greenbrier Companies, Inc. (GBX): $45.98
Chairman & CEO William A. Furman acquired 50,000 shares of this Oregon based railroad freight car equipment company, paying $43.57 per share for a total amount of $2.18 million. Mr. Furman increased his stake by 10.81% to 512,518 shares with this purchase.
Greenbrier manufactures, leases and manages railcars in North America, Europe and Brazil. The first time I came across Greenbrier was in the summer of 2011 after noticing a cluster of insider purchases by Mr. Furman and another director in the low teens. He also made an opportunistic purchase last May when he picked up 100,000 shares at an average price of $16.52 as you can see here. It is encouraging to see him “average up” at much higher prices, especially considering he was a seller at these prices back in 2017.
On the business front, Greenbrier has been a mixed bag. While the company has done a great job of reducing debt over the last ten years and using debt judiciously for acquisitions, earnings have declined in four out of the last five years. Over those five years, gross margins have declined from 22.8% in fiscal 2016 to 13.2% for fiscal 2020 ended August 2020.
Part of this is related to the decline in demand for railcars since 2015 as you can see from the following slide from Greenbrier’s investor presentation. The good news is that this trend is expected to reverse with demand projected to start improving next year. With the Biden administration blocking oil pipeline construction, more oil is likely to be transported by rail and this would benefit Greenbrier. So would a post-pandemic rebound in economic activity. There have been concerns about capital allocation and succession planning at Greenbrier as Mr. Furman is 76 years old and is expected to retire in September 2022.
You can view the list of recent insider transactions for The Greenbrier Companies, Inc. here.
P/E: 48.86 | Forward P/E: 21.09 | Industry P/E: 35.36 |
P/S: 0.62 | Price/Book: 1.18 | EV/EBITDA: 9.57 |
Market Cap: $1.51B | Avg. Daily Volume: 347,574 | 52 Week Range: $12.89 – $46.75 |
2. Dun & Bradstreet Holdings, Inc. (DNB): $23.49
Shares of this commercial data, analytics provider were acquired by 2 insiders:
You can view the list of recent insider transactions for Dun & Bradstreet Holdings, Inc. here.
P/E: N/A | Forward P/E: 20.43 | Industry P/E: 45.49 |
P/S: 5.72 | Price/Book: 2.82 | EV/EBITDA: 19.9 |
Market Cap: $9.94B | Avg. Daily Volume: 1,563,416 | 52 Week Range: $22.62 – $29.548 |
3. CuriosityStream Inc. (CURI): $18.69
Director John S. Hendricks acquired 74,000 shares of this media and entertainment company, paying $13.50 per share for a total amount of $999,000. Mr. Hendricks increased his stake by 9.00% to 896,157 shares with this purchase.
Mr. Hendricks also purchased shares in December and since we wrote about that purchase less than two months ago, the stock is up an astounding 77%. Mr. Hendricks is the founder and former chairman of Discovery (DISCA) and also founded CuriosityStream, which focuses on documentaries.
You can view the list of recent insider transactions for CuriosityStream Inc. here.
P/E: N/A | Forward P/E: N/A | Industry P/E: N/A |
P/S: 25.55 | Price/Book: N/A | EV/EBITDA: -18.41 |
Market Cap: $893.04M | Avg. Daily Volume: 911,032 | 52 Week Range: $7.44 – $21.17 |
4. Affiliated Managers Group, Inc. (AMG): $147.9
Shares of this asset management company were acquired by 2 insiders:
You can view the list of recent insider transactions for Affiliated Managers Group, Inc. here.
P/E: 34.16 | Forward P/E: 8.31 | Industry P/E: 20.41 |
P/S: 3.31 | Price/Book: 2.39 | EV/EBITDA: 13.04 |
Market Cap: $6.71B | Avg. Daily Volume: 411,400 | 52 Week Range: $44.37 – $148.37 |
5. Calix, Inc. (CALX): $36.80
Director Donald J. Listwin acquired 20,000 shares of this cloud and software platforms provider, paying $35.75 per share for a total amount of $715,000. These shares were purchased indirectly by No Mas Ninos, L.P.
You can view the list of recent insider transactions for Calix, Inc. here.
P/E: 68.15 | Forward P/E: 30.67 | Industry P/E: 46.59 |
P/S: 4.20 | Price/Book: 8.13 | EV/EBITDA: 37.91 |
Market Cap: $2.273B | Avg. Daily Volume: 883,080 | 52 Week Range: $5.61 – $38.26 |
You can view the full list of purchases from this Insider Buying page.
Notable Insider Sales:
1. Penn National Gaming, Inc. (PENN): $118.82
Shares of this casinos & gaming company were sold by 3 insiders:
You can view the list of recent insider transactions for Penn National Gaming, Inc. here.
P/E: N/A | Forward P/E: 46.05 | Industry P/E: N/A |
P/S: 4.74 | Price/Book: 7.03 | EV/EBITDA: 41.08 |
Market Cap: $18.46B | Avg. Daily Volume: 4,358,967 | 52 Week Range: $3.75 – $129 |
2. Guardant Health, Inc. (GH): $179.1
Shares of this precision oncology company were sold by 2 insiders:
You can view the list of recent insider transactions for Guardant Health, Inc. here.
P/E: N/A | Forward P/E: -110.56 | Industry P/E: N/A |
P/S: 65.99 | Price/Book: 16.38 | EV/EBITDA: -91.25 |
Market Cap: $17.91B | Avg. Daily Volume: 1,104,980 | 52 Week Range: $55.9 – $181.07 |
3. Monolithic Power Systems, Inc. (MPWR): $385.92
Shares of this semiconductor company were sold by 6 insiders:
You can view the list of recent insider transactions for Monolithic Power Systems, Inc. here.
P/E: 110.26 | Forward P/E: 57.17 | Industry P/E: 37.95 |
P/S: 20.69 | Price/Book: 18.07 | EV/EBITDA: 88.67 |
Market Cap: $17.47B | Avg. Daily Volume: 643,211 | 52 Week Range: $130.12 – $406.75 |
4. Facebook, Inc. (FB): $270.5
Shares of Facebook were sold by 2 insiders:
You can view the list of recent insider transactions for Facebook, Inc. here.
P/E: 26.81 | Forward P/E: 20.01 | Industry P/E: 39.38 |
P/S: 8.96 | Price/Book: 6.01 | EV/EBITDA: 18.2 |
Market Cap: $770.29B | Avg. Daily Volume: 18,081,959 | 52 Week Range: $137.1 – $304.67 |
5. Align Technology, Inc. (ALGN): $609.58
Shares of this medical device company were sold by 2 insiders:
You can view the list of recent insider transactions for Align Technology, Inc. here.
P/E: 27.2 | Forward P/E: 53.43 | Industry P/E: 73.72 |
P/S: 19.44 | Price/Book: 14.86 | EV/EBITDA: 98.51 |
Market Cap: $48.07B | Avg. Daily Volume: 526,548 | 52 Week Range: $127.88 – $634.46 |
You can view the full list of sales from this Insider Sales page.
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.