Insider Weekends – August 5, 2016
Welcome to edition 320 of Insider Weekends. Insider buying decreased last week with insiders buying $78.59 million of stock compared to $118.43 million in the week prior. Selling remained unchanged with insiders selling $2.12 billion of stock last week compared to $2.12 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 increased to 26.92. In other words, insiders sold almost 27 times as much stock as they purchased. The Sell/Buy ratio this week compares unfavorably with the prior week, when the ratio stood at 17.88. We are calculating an adjusted ratio by removing transactions by funds and companies and trying as best as possible only to retain information about insiders and 10% owners who are not funds or companies.
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. Penske Automotive Group, Inc. (PAG): $40
Chairman & CEO Roger S. Penske acquired 930,753 shares of this auto dealer, paying $39.16 per share for a total amount of $36.44 million. These shares were purchased indirectly by Penske Automotive Holdings Corp.
You can view the list of recent insider transactions for Penske Automotive Group, Inc. here.
|P/E: 10.68||Forward P/E: 9.55||Industry P/E: 11.98|
|P/S: 0.17||Price/Book: 1.98||EV/EBITDA: N/A|
|Market Cap: $3.41B||Avg. Daily Volume: 748,547||52 Week Range: $29.29 – $54.24|
2. Quotient Limited (QTNT): $6.25
Shares of this commercial-stage diagnostics company were acquired by 3 insiders:
- Director L. John Wilkerson acquired 180,000 shares, paying $5.50 per share for a total amount of $990,000. These shares were purchased indirectly by Galen Partners International.
- 10% Owner Deidre Cowan acquired 45,455 shares, paying $5.50 per share for a total amount of $250,003. These shares were purchased indirectly by Quotient Biodiagnostics Group Limited. Ms. Cowan is the spouse of Paul E. Cowan, the CEO of Quotient.
You can view the list of recent insider transactions for Quotient Limited here.
|P/E: N/A||Forward P/E: N/A||Industry P/E: N/A|
|P/S: 4.8||Price/Book: 3.37||EV/EBITDA: -2.01|
|Market Cap: $164.15M||Avg. Daily Volume: 39,725||52 Week Range: $5.67 – $17.9|
3. Royal Caribbean Cruises Ltd. (RCL): $74.48
Chairman & CEO Richard D. Fain acquired 29,190 shares of this cruise company, paying $68.52 per share for a total amount of $1.99 million. Mr. Fain increased his stake by 2.81% to 1,068,881 shares with this purchase.
You can view the list of recent insider transactions for Royal Caribbean Cruises Ltd. here.
|P/E: 21.26||Forward P/E: 10.61||Industry P/E: 24.31|
|P/S: 1.87||Price/Book: 1.94||EV/EBITDA: 11.66|
|Market Cap: $16.03B||Avg. Daily Volume: 2,285,620||52 Week Range: $64.21 – $103.4|
4. Infinera Corporation (INFN): $9.36
Shares of this networking equipment company were acquired by 4 insiders:
- Chief Executive Officer Thomas J. Fallon acquired 100,000 shares, paying $8.54 per share for a total amount of $853,550. These shares were purchased indirectly.
- Director Marcel Gani acquired 50,000 shares, paying $8.60 per share for a total amount of $430,215. Mr. Gani increased his stake by 133.17% to 87,547 shares with this purchase.
- Chief Financial Officer Brad Feller acquired 20,000 shares, paying $8.60 per share for a total amount of $172,000. Mr. Feller increased his stake by 22.32% to 109,586 shares with this purchase.
- Director John Daane acquired 12,000 shares, paying $8.49 per share for a total amount of $101,880.
These purchases follow purchases by the CEO and CFO in March of this year. The stock was down nearly 65% over the last year but rebounded following the release of second quarter earnings last week and this cluster of purchases.
You can view the list of recent insider transactions for Infinera Corporation here.
|P/E: 30.99||Forward P/E: 21.77||Industry P/E: 29.87|
|P/S: 1.3||Price/Book: 1.6||EV/EBITDA: 10.3|
|Market Cap: $1.34B||Avg. Daily Volume: 3,007,300||52 Week Range: $8.2 – $25.24|
5. Southwest Airlines Co. (LUV): $37.85
Shares of this airline were acquired by 3 insiders:
- COB, Pres., & CEO Gary C. Kelly acquired 28,106 shares, paying $35.58 per share for a total amount of $1 million. These shares were purchased indirectly through a trust.
- Director William H. Cunningham acquired 5,700 shares, paying $35.80 per share for a total amount of $204,046. Mr. Cunningham increased his stake by 10.53% to 59,839 shares with this purchase.
- EVP & Chief Operating Officer Michael G. Van De Ven acquired 4,200 shares, paying $35.77 per share for a total amount of $150,247. Mr. Ven increased his stake by 2.29% to 187,345 shares with this purchase.
You can view the list of recent insider transactions for Southwest Airlines Co. here.
|P/E: 10.04||Forward P/E: 9.61||Industry P/E: 9.01|
|P/S: 1.11||Price/Book: 2.89||EV/EBITDA: 4.13|
|Market Cap: $23.48B||Avg. Daily Volume: 7,323,970||52 Week Range: $32.94 – $51.34|
You can view the full list of purchases from this Insider Buying page.
Notable Insider Sales:
1. Amazon.com, Inc. (AMZN): $765.98
Shares of Amazon were sold by 2 insiders:
- Chairman, CEO and President Jeffrey P. Bezos sold 1,000,000 shares for $756.74, generating $756.74 million from the sale.
- Senior Vice President Jeffrey M. Blackburn sold 10,000 shares for $760.98, generating $7.61 million from the sale.
You can view the list of recent insider transactions for Amazon.com, Inc. here.
|P/E: 190.49||Forward P/E: 74.08||Industry P/E: 38.97|
|P/S: 2.99||Price/Book: 21.8||EV/EBITDA: 35.35|
|Market Cap: $363.13B||Avg. Daily Volume: 3,582,020||52 Week Range: $451 – $770.5|
2. GrubHub Inc. (GRUB): $38.76
Shares of this online restaurant delivery service were sold by 3 insiders:
- Director Benjamin C. Spero sold 1,968,007 shares for $38.84, generating $76.43 million from the sale. These shares were sold indirectly through a fund.
- CEO and President Matthew M. Maloney sold 92,666 shares for $38.34, generating $3.55 million from the sale. 1,649 of these shares were sold as a result of exercising options immediately prior to the sale.
- SVP, Secretary, Gen Counsel Margo Drucker sold 5,500 shares for $38.17, generating $209,917 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 GrubHub Inc. here.
|P/E: 80.75||Forward P/E: 36.57||Industry P/E: 27.13|
|P/S: 7.83||Price/Book: 3.57||EV/EBITDA: 31.52|
|Market Cap: $3.28B||Avg. Daily Volume: 2,047,750||52 Week Range: $17.77 – $39.53|
3. Knight Transportation Inc. (KNX): $29.55
Executive Chairman Kevin P. Knight sold 1,000,000 shares of this trucking company for $29.15, generating $29.15 million from the sale. These shares were sold indirectly through a trust.
You can view the list of recent insider transactions for Knight Transportation Inc. here.
|P/E: 22.54||Forward P/E: 21.89||Industry P/E: 16.45|
|P/S: 2.02||Price/Book: 3.08||EV/EBITDA: 8.89|
|Market Cap: $2.37B||Avg. Daily Volume: 967,758||52 Week Range: $20.56 – $30.38|
4. Glaukos Corporation (GKOS): $33.04
Director Jonathan Silverstein sold 425,000 shares of this ophthalmic medical technology company for $30.59, generating $13,000,750 from the sale. These shares were sold indirectly by OrbiMed Capital.
You can view the list of recent insider transactions for Glaukos Corporation here.
|P/E: N/A||Forward P/E: 236||Industry P/E: N/A|
|P/S: 12.03||Price/Book: 10.4||EV/EBITDA: 295.48|
|Market Cap: $1.09B||Avg. Daily Volume: 384,856||52 Week Range: $14.25 – $36.5|
5. Celgene Corporation (CELG): $115.53
Executive Chairman Robert J. Hugin sold 100,000 shares of this biotech company for $110.00, generating $11 million from the sale.
You can view the list of recent insider transactions for Celgene Corporation here.
|P/E: 48.83||Forward P/E: 16.46||Industry P/E: 29.41|
|P/S: 8.87||Price/Book: 16.24||EV/EBITDA: 25.96|
|Market Cap: $89.55B||Avg. Daily Volume: 4,514,070||52 Week Range: $92.98 – $132.6|
You can view the full list of sales from this Insider Sales page.
Disclaimer: I do not have any positions in any of the stocks mentioned in this article. 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.