Insider Weekends: AppLovin Insiders Love Them Shares Post IPO

Welcome to edition 569 of Insider Weekends. Insider buying decreased significantly last week with insiders purchasing $42.36 million of stock purchased compared to $132.61 million in the week prior. Selling also decreased to $1.65 billion compared to $3.07 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 38.87. In other words, insiders sold almost 39 times as much stock as they purchased. The Sell/Buy ratio this week compares unfavorably with the prior week, when the ratio stood at 23.18.

Insider Sector Heat Map May 21, 2021

Insider Sector Heat Map May 21, 2021

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): $62.37

Director Farhad Nanji acquired 182,798 shares of this mortgage finance company, paying $60.44 per share for a total amount of $11.05 million. These shares were purchased indirectly by MFN Partners, LP.

PennyMac remains on the top of our list for a second week in a row and this is the third time in two months we have written about Mr. Nanji’s purchases of this mortgage company. Since early March, he indirectly purchased 2.6 million shares of the company for $158.64 million. His average purchase price was $60.99.

What is interesting is that he has not always been a buyer of the stock. He made a 12,460 share direct purchase for $20.20 way back in 2013 and did not buy shares directly or indirectly until this March. He was actually a seller last June and August. The stock has nearly doubled in the last year thanks to the tailwinds of favorable housing conditions and attractive mortgage rates. While other mortgage companies like Rocket Companies (RKT) and Federal National Mortgage Association (FNMA) have seen their stock decline in the last month, PennyMac bucked the trend and continues to show positive momentum.

The company is also buying back its own stock and repurchased 4.7 million shares in Q1 2021 and an additional 270,000 shares last month. This level of insider buying and buybacks by the company is perplexing considering the industry is at a cyclical peak and the company saw declines in production, servicing and investment management revenue in Q1 2021 on a sequential quarter basis compared to Q4 2020.

You can view the list of recent insider transactions for PennyMac Financial Services, Inc. here.

P/E: 2.78 Forward P/E: 5.78 Industry P/E: 10.74
P/S: 1 Price/Book: 1.2 EV/EBITDA: N/A
Market Cap: $4.16B Avg. Daily Volume: 882,201 52 Week Range: $32.35 – $70.99

2. MICT, Inc. (MICT): $1.81

CEO Darren Mercer acquired 6,000,000 shares of this mobile computing devices and software manufacturer, paying $1.41 per share for a total amount of $8.46 million.

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

P/E: N/A Forward P/E: 10.65 Industry P/E: 37.45
P/S: 175.77 Price/Book: 2.01 EV/EBITDA: -12.33
Market Cap: $206.18M Avg. Daily Volume: 5,667,939 52 Week Range: $0.995 – $8.45

3. AppLovin Corporation (APP): $68.35

Shares of this software-based platform for mobile app developers were acquired by 2 insiders:

  • CEO & Chairperson Arash Adam Foroughi acquired 100,000 shares, paying $61.72 per share for a total amount of $6.17 million. These shares were purchased indirectly through a trust.
  • Director Eduardo Vivas acquired 16,883 shares, paying $59.23 per share for a total amount of $999,985. Mr. Vivas increased his stake by 0.16% to 10,882,701 shares with this purchase.

AppLovin is a KKR backed mobile app marketing company that went public last month at $80 per share and saw its stock decline 18.5% on its first day of trading on April 15, 2021. This high growth software company expects to grow revenue more than 80% in 2021 to $2.65 – $2.70 billion and expects to generate adjusted EBITDA of $680 to $700 million. Assuming the company achieves these 2021 targets, it is trading at about 10 times estimated 2021 revenue and just shy of 40 times adjusted estimated 2021 EBITDA.

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

P/E: N/A Forward P/E: N/A Industry P/E: 55.03
P/S: 13.89 Price/Book: N/A EV/EBITDA: 84.19
Market Cap: $24.93B Avg. Daily Volume: 1,736,500 52 Week Range: $49.41 – $71.51

4. AT&T Inc. (T): $30.01

Shares of AT&T were acquired by 2 insiders:

  • CEO & President John T. Stankey acquired 34,614 shares, paying $28.81 per share for a total amount of $997,227. These shares were purchased indirectly through a trust.
  • Sr. Exec VP and CFO Pascal Desroches acquired 19,976 shares, paying $29.52 per share for a total amount of $589,629. Mr. Desroches increased his stake by 11.69% to 190,811 shares with this purchase.

You can view the list of recent insider transactions for AT&T Inc. here.

P/E: N/A Forward P/E: 9.53 Industry P/E: 28.47
P/S: 1.24 Price/Book: 1.29 EV/EBITDA: 8.15
Market Cap: $214.27B Avg. Daily Volume: 48,874,989 52 Week Range: $26.35 – $33.88

5. Cable One, Inc. (CABO): $1772.34

Chief Financial Officer Steven Scott Cochran acquired 300 shares of this data, video, and voice services provider, paying $1725.83 per share for a total amount of $517,750.

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

P/E: 35.21 Forward P/E: 31.39 Industry P/E: 40.24
P/S: 7.95 Price/Book: 6.68 EV/EBITDA: 18.4
Market Cap: $10.7B Avg. Daily Volume: 49,504 52 Week Range: $1674.35 – $2326.8

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

Notable Insider Sales:

1. Walmart Inc. (WMT): $141.75

Director Robson S. Walton sold 2,653,252 shares of Walmart for $142.19, generating $377.26 million from the sale. These shares were sold indirectly by a trust.

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

P/E: 29.84 Forward P/E: 22.57 Industry P/E: 30.50
P/S: 0.71 Price/Book: 4.94 EV/EBITDA: 11.86
Market Cap: $398.81B Avg. Daily Volume: 9,193,342 52 Week Range: $117.01 – $153.66

2. The Blackstone Group Inc. (BX): $90.74

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

  • Executive Vice Chairman Hamilton E. James sold 968,210 shares for $88.03, generating $85.24 million from the sale. 238,909 of these shares were purchased indirectly through various trusts.
  • Chief Legal Officer John G. Finley sold 36,000 shares for $90.57, generating $3.26 million from the sale.

You can view the list of recent insider transactions for The Blackstone Group Inc. here.

P/E: 16.59 Forward P/E: 22.74 Industry P/E: N/A
P/S: 4.37 Price/Book: 7.75 EV/EBITDA: N/A
Market Cap: $63.95B Avg. Daily Volume: 3,130,015 52 Week Range: $49.26 – $91.6713

3. Facebook, Inc. (FB): $316.23

Shares of Facebook were sold by 3 insiders:

  • COB and CEO Mark Zuckerberg sold 210,800 shares for $312.74, generating $65.92 million from the sale. These shares were sold indirectly by various entities.
  • Chief Financial Officer David M. Wehner sold 9,607 shares for $303.83, generating $2.92 million from the sale. 1,431 of these shares were sold indirectly by Mr. Wehner’s spouse.
  • VP and General Counsel Jennifer Newstead sold 250 shares for $313.36, generating $78,340 from the sale.

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

P/E: 27.1 Forward P/E: 20.76 Industry P/E: 32.56
P/S: 9.5 Price/Book: 6.72 EV/EBITDA: 18.61
Market Cap: $896.66B Avg. Daily Volume: 20,276,785 52 Week Range: $207.11 – $331.81

4. Acushnet Holdings Corp. (GOLF): $51.2

Director Keun Chang Yoon sold 650,000 shares of this golf products manufacturer for $48.68, generating $31.64 million from the sale. These shares were sold indirectly by Magnus Holdings Co., Ltd.

You can view the list of recent insider transactions for Acushnet Holdings Corp. here.

P/E: 22.34 Forward P/E: 24.38 Industry P/E: 38.65
P/S: 2.13 Price/Book: 3.63 EV/EBITDA: 14.51
Market Cap: $3.79B Avg. Daily Volume: 317,606 52 Week Range: $31.5 – $53.99

5. Hasbro, Inc. (HAS): $94.06

Director Alan G. Hassenfeld sold 450,000 shares of Hasbro for $94.12, generating $42.35 million from the sale. These shares were sold indirectly by a trust.

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

P/E: 31.71 Forward P/E: 18.3 Industry P/E: 38.65
P/S: 2.36 Price/Book: 4.43 EV/EBITDA: 16.48
Market Cap: $12.94B Avg. Daily Volume: 893,212 52 Week Range: $68.1 – $101.24

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: I hold a long position in Rocket Companies (RKT). 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.

Leave A Comment

You must be logged in to post a comment.