Insider Weekends: Insider Buying at Beyond Air Boosts Stock

Shares of medical devices company Beyond Air (XAIR) appreciated significantly last week after a couple of insiders including its CEO purchased shares just two days after the FDA approved the company’s LungFit device to treat respiratory failure in infants. Beyond Air’s LungFit device is capable of delivering precise amounts of Nitric Oxide (NO) to patient’s lungs by capturing the NO from ambient air instead of using NO cylinders. The company is also testing the efficacy of another device to see if delivering high concentrations of NO could help treat solid tumors. The company has very little revenue and mounting losses as you would expect from a developmental stage medical devices company.

Another interesting insider purchase last week was by the new CEO of NextEra Energy (NEE). We wrote the following about NextEra earlier this year,

Four different insiders including both the CEO and CFO of NextEra Energy acquired shares after a rare large drop in the stock that saw it dip below the $70 level. The drop in the stock was a result of Q4 2021 revenue of $5.05 billion coming in well below expectations of $5.79 billion and the sudden departure of its Chairman and CEO Jim Robo.

Mr. Robo has been with NextEra for 20 years and has served as its CEO since July 2012. He has been credited with transforming a sleepy electric utility into the clean energy juggernaut it is perceived as now. The company has been growing its dividend for 26 consecutive years and has an impressive 5 year dividend CAGR of 12%. The current yield is 2% with a 61% payout ratio. The company has been afforded a valuation premium compared to its peers and currently trades at a forward P/E of 27 and a forward EV/EBITDA of 16.49, not exactly the kind of valuation you would expect from a regulated utility in a rising interest rate environment. With $54 billion in net debt on the balance sheet and management changes on the horizon, I would approach NextEra with caution despite insider enthusiasm.

Welcome to edition 627 of Insider Weekends. Insider buying decreased last week with insiders purchasing $20.83 million of stock compared to $35.49 million in the week prior. Selling also decreased to $206.52 million compared to $403.42 million 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 9.91. In other words, insiders sold almost 10 times as much stock as they purchased. The Sell/Buy ratio this week was favorable compared to the prior week when the ratio stood at 11.37.

Notable Insider Buys:

1. Beyond Air, Inc. (XAIR): $10.96

Shares of this commercial medical device company were acquired by 2 insiders:

  • Director Robert Carey acquired 175,000 shares, paying $6.45 per share for a total amount of $1.13 million. Mr. Carey increased his stake by 30.85% to 742,323 shares with this purchase.
  • CEO and Chairman of the Board Steven A. Lisi acquired 73,000 shares, paying $6.63 per share for a total amount of $483,698. Mr. Lisi increased his stake by 5.32% to 1,446,445 shares with this purchase.

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

P/E: N/A Forward P/E: -14.81 Industry P/E: 26.84
P/S: N/A Price/Book: 4.5 EV/EBITDA: -8.56
Market Cap: $327.57M Avg. Daily Volume: 555,381 52 Week Range: $4.785 – $16.41

2. BitNile Holdings, Inc. (NILE): $0.355

Executive Chairman Milton C. Ault III acquired 3,286,874 shares of this cryptocurrency and digital finance company, paying $0.31 per share for a total amount of $1.03 million. These shares were purchased indirectly by Ault Alpha LP.

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

P/E: N/A Forward P/E: -2.73 Industry P/E: 17.8
P/S: 1.6 Price/Book: 0.26 EV/EBITDA: -18.22
Market Cap: $115.01M Avg. Daily Volume: 23,606,986 52 Week Range: $0.23 – $2.95

3. NextEra Energy, Inc. (NEE): $80.25

President & CEO John W. Ketchum acquired 12,909 shares of this regulated electric company, paying $78.33 per share for a total amount of $1.01 million. Mr. Ketchum increased his stake by 10.76% to 132,894 shares with this purchase.

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

P/E: 108.45 Forward P/E: 26.14 Industry P/E: 21.56
P/S: 9.71 Price/Book: 4.39 EV/EBITDA: 37.22
Market Cap: $157.65B Avg. Daily Volume: 10,414,190 52 Week Range: $67.22 – $93.73

4. Rocket Companies, Inc. (RKT): $8.56

Shares of this tech-driven real estate, mortgage, and e-Commerce company were acquired by 2 insiders:

  • Chief Executive Officer Jay Farner acquired 94,600 shares, paying $8.43 per share for a total amount of $797,494. Mr. Farner increased his stake by 3.17% to 3,080,007 shares with this purchase.
  • Director Matthew Rizik acquired 10,200 shares, paying $8.44 per share for a total amount of $86,072. Mr. Rizik increased his stake by 4.34% to 245,102 shares with this purchase.

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

P/E: 4.75 Forward P/E: 10.7 Industry P/E: 9.64
P/S: 1.51 Price/Book: 1.87 EV/EBITDA: 4.2
Market Cap: $17.01B Avg. Daily Volume: 4,373,342 52 Week Range: $6.269 – $19.55

5. Berkshire Hathaway Inc. (BRK.B): $280.83

Director Ronald L. Olson acquired 2,410 shares of Berkshire Hathaway, paying $274.35 per share for a total amount of $661,183. Mr. Olson increased his class B stake by 74.84% to 5,630 shares with this purchase. 1,515 of these shares were purchased indirectly by Ronald & Jane Olson Foundation.

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

P/E: 7.55 Forward P/E: 20.7 Industry P/E: 9.64
P/S: 1.76 Price/Book: 1.2 EV/EBITDA: N/A
Market Cap: $619.77B Avg. Daily Volume: 4,418,945 52 Week Range: $263.68 – $362.10

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

Notable Insider Sales:

1. Alphabet Inc. (GOOG): $2403.37

SVP, Chief Business Officer Philipp Schindler sold 3,834 shares of Alphabet for $2182.62, generating $8.37 million from the sale.

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

P/E: 21.59 Forward P/E: 18.28 Industry P/E: N/A
P/S: 5.83 Price/Book: 6.23 EV/EBITDA: 15.41
Market Cap: $1.58T Avg. Daily Volume: 1,594,693 52 Week Range: $2044.16 – $3042

2. Booz Allen Hamilton Holding Corporation (BAH): $92.54

Shares of this management and technology consulting company were sold by 4 insiders:

  • President and CEO Horacio Rozanski sold 40,000 shares for $92.80, generating $3.71 million from the sale.
  • EVP & Chief Financial Officer Lloyd Howell Jr. sold 25,883 shares for $90.99, generating $2.36 million from the sale.
  • Executive Vice President Karen M. Dahut sold 14,419 shares for $90.22, generating $1.3 million from the sale.
  • EVP & Chief Operating Officer Kristine Anderson sold 5,000 shares for $90.00, generating $450,000 from the sale. These shares were sold as a result of exercising options immediately prior to the sale.

You can view the list of recent insider transactions for Booz Allen Hamilton Holding Corporation here.

P/E: 26.9 Forward P/E: 19 Industry P/E: 17.8
P/S: 1.46 Price/Book: 11.73 EV/EBITDA: 15.85
Market Cap: $12.25B Avg. Daily Volume: 1,064,775 52 Week Range: $69.68 – $93.45

3. NIKE, Inc. (NKE): $107.93

EVP: CHRO Monique S. Matheson sold 59,525 shares of Nike for $105.47, generating $6.28 million from the sale. 29,500 of these shares were sold as a result of exercising options immediately prior to the sale.

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

P/E: 28.78 Forward P/E: 23.31 Industry P/E: 11.5
P/S: 3.64 Price/Book: 11.1 EV/EBITDA: 22.88
Market Cap: $169.86B Avg. Daily Volume: 7,661,095 52 Week Range: $99.53 – $179.1

4. Interactive Brokers Group, Inc. (IBKR): $56.26

Chairman Thomas Peterffy sold 80,000 shares of this investment brokerage for $55.75, generating $4.46 million from the sale.

You can view the list of recent insider transactions for Interactive Brokers Group, Inc. here.

P/E: 19.83 Forward P/E: 12.36 Industry P/E: 9.64
P/S: 9.31 Price/Book: 2.25 EV/EBITDA: N/A
Market Cap: $23.45B Avg. Daily Volume: 864,088 52 Week Range: $52.18 – $82.83

5. Velodyne Lidar, Inc. (VLDR): $1.05

Former Director Marta R. Thoma sold 5,435,865 shares of this real-time 3D vision provider for $0.82, generating $4.46 million from the sale.

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

P/E: N/A Forward P/E: -1.62 Industry P/E: 23.96
P/S: 4.33 Price/Book: 0.8 EV/EBITDA: 0.09
Market Cap: $218.35M Avg. Daily Volume: 4,098,526 52 Week Range: $0.83 – $9.93

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 and Plus members.

Disclaimer: I hold a long positions in Berkshire Hathaway (BRK.B) and 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.

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