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: