This Labor Day weekend yielded a crop of very interesting companies that have gone public recently through the traditional IPO process or by merging with SPACs. Almost all of them have been hit hard in recent weeks despite very high revenue growth rates. Investor appetite for post-SPAC merger companies and new IPOs that report losses appears to be tepid. These insiders appear to think differently and there are some prominent ones among them including David Wells who served as the CFO of Netflix for 8 years and Ronald Burkle, the co-founder of the private investment firm The Yucaipa Companies.
Welcome to edition 583 of Insider Weekends. Insider buying decreased last week with insiders purchasing $74.99 million of stock purchased compared to $93.99 million in the week prior. Selling also decreased to $3.29 billion compared to $3.32 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 43.85 In other words, insiders sold almost 44 times as much stock as they purchased. The Sell/Buy ratio this week was unfavorable compared to the prior week when the ratio stood at 35.37.
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. Cano Health, Inc. (CANO): $13.49
Shares of this primary care medical services provider were acquired by 2 insiders:
Cano Health went public by merging with the SPAC JAWS Acquisition in July of this year. This Miami, Florida based healthcare firm with 108 medical centers focuses on primary care for seniors and operates in 5 states including Florida, Illinois, Nevada, New Mexico and Texas. The company grew revenue by 130% to $393.4 million in Q2 2021 and “adjusted” EBITDA of $25 million, a 53% increase year-over-year. Net income was $4.9 million in Q2 2021 compared to a loss of $11 million in Q2 2020. Cano Health has been growing organically by opening new clinics and acquiring companies.
The company recently bumped up its guidance for members, revenue and EBITDA for full year 2021 and 2022. The increased guidance was based on organic growth without taking into account any recent or future acquisitions. The company now expects revenue of $1.6 billion for 2021 and between $2.5 and $2.6 billion for 2022.
The stock has rebounded off its lows in mid-August and insiders have been buying actively in the second half of August. An area of concern that came up with researching the company this weekend was their low rating on Yelp from patients and on Indeed from employees. Explosive growth can be difficult to manage and can translate to a less than optimum experience for patients and employees. Growing pains are not unusual and it would be good to see if the company can address these concerns and focus on quality as it continues to grow.
You can view the list of recent insider transactions for Cano Health, Inc. here.
P/E: N/A | Forward P/E: -337.25 | Industry P/E: N/A |
P/S: 3.62 | Price/Book: 6.52 | EV/EBITDA: 58.91 |
Market Cap: $2.34B | Avg. Daily Volume: 2,583,341 | 52 Week Range: $9.2 – $17.43 |
2. SelectQuote, Inc. (SLQT): $12.07
Shares of this insurance brokerage were acquired by 5 insiders:
SelectQuote is a company very similar to GoHealth (GOCO), an online insurance broker we featured as a spotlight idea in our Special Situations Newsletter. Just like GOCO, the stock has been hit hard in recent weeks. Both companies posted big increases in top line numbers and both have seen insider buying recently. While GOCO focuses on health insurance and specifically Medicare, SelectQuote also lets customers shop for term life, home and auto insurance online.
You can view the list of recent insider transactions for SelectQuote, Inc. here.
P/E: 15.28 | Forward P/E: 11.95 | Industry P/E: 10.94 |
P/S: 2.11 | Price/Book: 2.92 | EV/EBITDA: 9.67 |
Market Cap: $1.98B | Avg. Daily Volume: 2,445,641 | 52 Week Range: $7.72 – $33 |
3. Hims & Hers Health, Inc. (HIMS): $8.21
Director David B. Wells acquired 360,000 shares of this multi-specialty telehealth platform, paying $8.24 per share for a total amount of $2.97 million.
You can view the list of recent insider transactions for Hims & Hers Health, Inc. here.
P/E: N/A | Forward P/E: -51.31 | Industry P/E: N/A |
P/S: 8.52 | Price/Book: 5.42 | EV/EBITDA: -19.08 |
Market Cap: $1.67B | Avg. Daily Volume: 2,329,030 | 52 Week Range: $6.71 – $25.4 |
4. Membership Collective Group Inc. (MCG): $12.23
Director Ronald W. Burkle acquired 200,000 shares of this upscale social clubs operator, paying $12.15 per share for a total amount of $2.43 million.
You can view the list of recent insider transactions for Membership Collective Group Inc. here.
P/E: N/A | Forward P/E: N/A | Industry P/E: N/A |
P/S: 6.53 | Price/Book: N/A | EV/EBITDA: -62.73 |
Market Cap: $2.49B | Avg. Daily Volume: 599,254 | 52 Week Range: $9.56 – $14.26 |
5. REE Automotive Ltd. (REE): $5.77
Shares of this pre-revenue EV company were acquired by 2 insiders:
You can view the list of recent insider transactions for REE Automotive Ltd. here.
P/E: N/A | Forward P/E: N/A | Industry P/E: N/A |
P/S: 10214.6 | Price/Book: 9.47 | EV/EBITDA: -3.33 |
Market Cap: $1.81B | Avg. Daily Volume: 663,864 | 52 Week Range: $5.48 – $16.66 |
You can view the full list of purchases from this Insider Buying page.
Notable Insider Sales:
1. Snowflake Inc. (SNOW): $310
Shares of this cloud-based data platform were sold by 6 insiders:
You can view the list of recent insider transactions for Snowflake Inc. here.
P/E: N/A | Forward P/E: -1631.58 | Industry P/E: 57.15 |
P/S: 109.59 | Price/Book: 18.77 | EV/EBITDA: -117.64 |
Market Cap: $93.28B | Avg. Daily Volume: 4,208,718 | 52 Week Range: $184.71 – $429 |
2. Walmart Inc. (WMT): $149.25
Director Robson S. Walton sold 1,299,038 shares of Walmart for $148.70, generating $193.17 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: 69.16 | Forward P/E: 22.58 | Industry P/E: 33.33 |
P/S: 0.74 | Price/Book: 5.17 | EV/EBITDA: 11.84 |
Market Cap: $418.22B | Avg. Daily Volume: 7,389,618 | 52 Week Range: $126.28 – $153.66 |
3. Facebook, Inc. (FB): $376.26
Shares of Facebook were sold by 2 insiders:
You can view the list of recent insider transactions for Facebook, Inc. here.
P/E: 27.94 | Forward P/E: 23.5 | Industry P/E: 31.31 |
P/S: 10.12 | Price/Book: 7.69 | EV/EBITDA: 19.38 |
Market Cap: $1.06T | Avg. Daily Volume: 13,911,052 | 52 Week Range: $244.13 – $384.33 |
4. NXP Semiconductors N.V. (NXPI): $212.99
Shares of this semiconductor company were sold by 2 insiders:
You can view the list of recent insider transactions for NXP Semiconductors N.V. here.
P/E: 58.48 | Forward P/E: 18.55 | Industry P/E: 32.40 |
P/S: 5.68 | Price/Book: 7.72 | EV/EBITDA: 20.22 |
Market Cap: $56.47B | Avg. Daily Volume: 2,255,495 | 52 Week Range: $117.25 – $228.72 |
5. Upstart Holdings, Inc. (UPST): $247.29
Shares of this cloud- based artificial intelligence (AI) lending platform were sold by 2 insiders:
You can view the list of recent insider transactions for Upstart Holdings, Inc. here.
P/E: 269.09 | Forward P/E: 144.61 | Industry P/E: 9.29 |
P/S: 40.71 | Price/Book: 26.81 | EV/EBITDA: 214.3 |
Market Cap: $19.23B | Avg. Daily Volume: 5,264,330 | 52 Week Range: $22.61 – $254.13 |
You can view the full list of sales from this Insider Sales page.
Disclaimer: I hold a long position in GoHealth (GOCO). 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.