Insider Weekends: July 29, 2022

Airlines have a challenging reputation among investors on account of the highly competitive and capital intensive nature of these companies. There is little left for investors when all is said and done. To add to margin pressures they are also prone to going bust after every large economic upheaval whether it is the bursting of a real estate bubble or a pandemic. The only time I invested in an Airline was to buy shares of Alaska Airlines a few years before the pandemic and because service fees for things like excess baggage had changed industry dynamics.

I was surprised to see that an insider of United Airlines (UAL) not only purchased shares last week but this was his third purchase in the last two months totaling almost $6 million. The insider also happens to be an independent director with an investment background, one of our favorite kind of insiders. Edward Shapiro is the former Managing Director of Boston-based travel, media and technology focused investment firm PAR Capital Management. He has also been on United’s board for the last 6 years. While United is not my first choice when I think about an airline, this purchase might make me revisit my Alaska Airlines investment to see if the strong summer travel season and easing oil prices have made a difference.

Welcome to edition 630 of Insider Weekends. Insider buying more than doubled last week with insiders purchasing $34.47 million of stock compared to $13.33 million in the week prior. The level of inside buying is still muted because we are in earnings season. Selling declined significantly to $398.8 million compared to $1.1 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 11.57. In other words, insiders sold almost 12 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 82.79.

Notable Insider Buys:

1. United Airlines Holdings, Inc. (UAL): $36.75

Director Edward Shapiro acquired 50,000 shares of this airline, paying $35.74 per share for a total amount of $1.79 million. Mr. Shapiro increased his stake by 50.00% to 150,000 shares with this purchase.

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

P/E: N/A Forward P/E: 6.05 Industry P/E: 18.95
P/S: 0.34 Price/Book: 3.03 EV/EBITDA: 20.19
Market Cap: $12.11B Avg. Daily Volume: 12,453,748 52 Week Range: $30.54 – $54.52

2. Jefferies Financial Group Inc. (JEF): $32.57

Director Thomas W. Jones acquired 40,000 shares of this financial conglomerate, paying $31.21 per share for a total amount of $1.25 million. Mr. Jones increased his stake by 250.60% to 55,962 shares with this purchase.

You can view the list of recent insider transactions for Jefferies Financial Group Inc. here.

P/E: 7.4 Forward P/E: 8.8 Industry P/E: 10.19
P/S: 1.11 Price/Book: 0.73 EV/EBITDA: N/A
Market Cap: $7.57B Avg. Daily Volume: 1,468,319 52 Week Range: $25.88 – $44.47

3. Rocket Companies, Inc. (RKT): $9.52

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

  • Chief Executive Officer Jay Farner acquired 105,700 shares, paying $9.43 per share for a total amount of $996,772. Mr. Farner increased his stake by 3.20% to 3,407,007 shares with this purchase.
  • Director Matthew Rizik acquired 11,300 shares, paying $9.43 per share for a total amount of $106,585. Mr. Rizik increased his stake by 4.20% to 280,302 shares with this purchase.

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

P/E: 5.28 Forward P/E: 12.36 Industry P/E: 10.19
P/S: 1.68 Price/Book: 2.08 EV/EBITDA: 4.23
Market Cap: $18.92B Avg. Daily Volume: 3,860,625 52 Week Range: $6.269 – $19.55

4. Conagra Brands, Inc. (CAG): $34.21

Director Emanuel Chirico acquired 30,000 shares of this consumer packaged goods food company, paying $34.06 per share for a total amount of $1.02 million. Mr. Chirico increased his stake by 278.09% to 40,788 shares with this purchase.

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

P/E: 18.59 Forward P/E: 13.36 Industry P/E: 20.74
P/S: 1.42 Price/Book: 1.87 EV/EBITDA: 12.72
Market Cap: $16.42B Avg. Daily Volume: 4,297,666 52 Week Range: $30.06 – $36.97

5. Nicolet Bankshares, Inc. (NIC): $79.98

Director John Nicholas Dykema acquired 9,586 shares of this regional bank, paying $78.99 per share for a total amount of $757,198. These shares were purchased indirectly through a trust.

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

P/E: 15.26 Forward P/E: 9.74 Industry P/E: 10.19
P/S: 4.43 Price/Book: 1.28 EV/EBITDA: N/A
Market Cap: $1.07B Avg. Daily Volume: 38,604 52 Week Range: $69.34 – $98.2

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

Notable Insider Sales:

1. Vertex Pharmaceuticals Incorporated (VRTX): $280.41

Executive Chairman Jeffrey M. Leiden sold 132,079 shares of this biotech company for $281.38, generating $37.16 million from the sale. 60,342 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 Vertex Pharmaceuticals Incorporated here.

P/E: 29.7 Forward P/E: 18.16 Industry P/E: 28.3
P/S: 9.02 Price/Book: 6.57 EV/EBITDA: 21.06
Market Cap: $71.72B Avg. Daily Volume: 1,694,720 52 Week Range: $176.36 – $296.84

2. Airbnb, Inc. (ABNB): $110.98

Shares of Airbnb were sold by 2 insiders:

  • Chairman of Airbnb.org Joseph Gebbia sold 265,523 shares for $106.01, generating $28.15 million from the sale. 250,000 of these shares were sold indirectly through a trust and 15,523 of these shares were sold as a result of exercising options immediately prior to the sale.
  • Director Belinda J. Johnson sold 1,000 shares for $106.98, generating $106,980 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 Airbnb, Inc. here.

P/E: 81.01 Forward P/E: 45.86 Industry P/E: 12.28
P/S: 10.53 Price/Book: 14.91 EV/EBITDA: 74.65
Market Cap: $69.67B Avg. Daily Volume: 7,925,256 52 Week Range: $86.71 – $212.584

3. BlackRock, Inc. (BLK): $669.18

President Robert Kapito sold 37,588 shares of this asset management company for $632.88, generating $23.79 million from the sale.

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

P/E: 17.63 Forward P/E: 17.82 Industry P/E: 10.19
P/S: 5.21 Price/Book: 2.71 EV/EBITDA: 13.34
Market Cap: $101.02B Avg. Daily Volume: 929,619 52 Week Range: $575.6 – $973.16

4. Enphase Energy, Inc. (ENPH): $284.18

Shares of this home energy solutions provider were sold by 2 insiders:

  • Director Benjamin John Kortlang sold 50,000 shares for $268.59, generating $13.43 million from the sale.
  • Director Steven J. Gomo sold 35,822 shares for $279.21, generating $10 million from the sale.

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

P/E: 208.96 Forward P/E: 59.95 Industry P/E: 24.9
P/S: 22.18 Price/Book: 85.34 EV/EBITDA: 123.82
Market Cap: $38.49B Avg. Daily Volume: 2,976,314 52 Week Range: $113.4 – $287.38

5. Snap Inc. (SNAP): $9.88

Shares of this camera company were sold by 2 insiders:

  • Chief Technology Officer Robert C. Murphy sold 900,000 shares for $9.80, generating $8.82 million from the sale.
  • Director Joanna Coles sold 20,000 shares for $10.00, generating $200,002 from the sale.

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

P/E: N/A Forward P/E: 39.52 Industry P/E: 17.62
P/S: 3.54 Price/Book: 4.72 EV/EBITDA: -22.03
Market Cap: $16.09B Avg. Daily Volume: 55,138,275 52 Week Range: $9.34 – $83.34

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 long positions in Rocket Companies (RKT), Airbnb (ABNB) and Vertex Pharmaceuticals (VRTX). 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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