Welcome to edition 562 of Insider Weekends. Insider buying decreased last week with insiders purchasing $116.21 million of stock purchased compared to $154.4 million in the week prior. We saw several repeat purchases this week with Farhad Nanji buying more of PennyMac Financial Services (PFSI)) and another director joining Terry Considine in buying shares of apartment REIT AIV. Selling increased with insiders selling $2.49 billion of stock last week compared to $2.2 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 21.41. In other words, insiders sold more than 21 times as much stock as they purchased. The Sell/Buy ratio this week compares unfavorably with the prior week, when the ratio stood at an unusually high 14.27.
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. PennyMac Financial Services, Inc. (PFSI): $65.67
Director Farhad Nanji acquired 292,146 shares of this mortgage finance company, paying $64.08 per share for a total amount of $18.72 million. These shares were purchased indirectly by MFN Partners, LP.