Welcome to edition 573 of Insider Weekends. Insider buying increased significantly last week with insiders purchasing $156.77 million of stock purchased compared to $31.91 million in the week prior. Selling on the other hand, decreased to $1.85 billion compared to $2.17 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 11.82. In other words, insiders sold almost 12 times as much stock as they purchased. The Sell/Buy ratio this week compares favorably with the prior week when the ratio stood at 67.99.
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. AMERCO (UHAL): $526.51
Chairman/President Edward J. Shoen acquired 81,810 shares of this DIY moving and storage operator, paying $551.76 per share for a total amount of $45.14 million. These shares were purchased indirectly by Willow Grove Holdings LP.