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Insider Buying

    Insider Weekends – October 24, 2014

    Welcome to edition 227 of Insider Weekends. Insider buying declined sharply last week with insiders buying $56.48 million of stock compared to $165.25 million in the week prior. Selling also decreased with insiders selling $393.38 million of stock last week compared to $653.17 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 went up to 6.96. In other words, insiders sold  almost 7 times as much stock as they purchased. The Sell/Buy ratio this week compares unfavorably with the prior week, when the ratio stood at 3.95. 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.

    Insider Sell Buy Ratio October 24, 2014

    Insider Sell Buy Ratio October 24, 2014

    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. AGCO Corporation (AGCO): $45.3

    Director Mallika Srinivasan acquired 491,557 shares of this farm & construction machinery company, paying $44.13 per share for a total amount of $21.73 million. These shares were purchased indirectly by Chennai, India based TAFE Motors and Tractors Limited.

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

    P/E: 8.3 Forward P/E: 12.94 Industry P/E: 15
    P/S: 0.41 Price/Book: 1.05 EV/EBITDA: 4.69
    Market Cap: $4.25B Avg. Daily Volume: 1,583,100 52 Week Range: $41.83 – $64.44

    2. Sears Holdings Corporation (SHLD): $38.97

    10% owner Bruce R. Berkowitz acquired 403,600 shares of this department stores chain, paying $34.61 per share for a total amount of $13.97 million.

    We normally don’t include purchases by 10% owners or funds but decided to make an exception in this case to highlight Bruce Berkowitz’s continued purchases of Sears. They remind me of Francis Chou’s purchases of Overstock.com (OSTK) back in 2011-2012 when the numbers didn’t look particularly attractive. You can read a profile of Mr. Chou in a Gurufocus.com article titled ‘The Investment Guru That You Never Heard Of‘.

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

    P/E: N/A Forward P/E: N/A Industry P/E: 17.63
    P/S: 0.11 Price/Book: 7.44 EV/EBITDA: -7.82
    Market Cap: $4.15B Avg. Daily Volume: 1,383,920 52 Week Range: $23.84 – $66.77

    3. Opko Health, Inc. (OPK): $8.4

    CEO & Chairman Phillip Frost M.D. acquired 94,800 shares of this medical devices and drug development company, paying $8.23 per share for a total amount of $780,378. These shares were purchased indirectly by Frost Gamma Investments Trust.

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

    P/E: N/A Forward P/E: N/A Industry P/E: 29.87
    P/S: 41.17 Price/Book: 3.88 EV/EBITDA: -41.46
    Market Cap: $3.61B Avg. Daily Volume: 3,098,330 52 Week Range: $7.32 – $11.64

    4. NanoViricides, Inc. (NNVC): $3.4

    Director Milton Boniuk acquired 100,000 shares of this nano-biopharmaceutical company, paying $3.11 per share for a total amount of $310,532. Mr. Boniuk increased his stake by 15.18% to 758,963 shares with this purchase.

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

    P/E: N/A Forward P/E: N/A Industry P/E: N/A
    P/S: N/A Price/Book: 6.56 EV/EBITDA: -19.7
    Market Cap: $191.93M Avg. Daily Volume: 270,722 52 Week Range: $2.67 – $6.65

    5. LiveDeal, Inc. (LIVE): $2.96

    CEO, CFO and President Jon Isaac acquired 100,000 shares of this internet information provider, paying $3.06 per share for a total amount of $305,875. Mr. Isaac increased his stake by 1.22% to 8,303,245 shares with this purchase.

    If there ever was a case of a CEO buying shares to signal the market, this is it. The company issued a press release last week indicating Mr. Isaac was going to buy 250,000 shares of the company and the stock opened nearly 18% higher the following day only to settle lower by the end of the day. The stock again spiked when the actual form 4 was filed only to once again settle lower. The company then issued another press release to indicate Mr. Isaac had purchased 100,000 shares.

    Looking at the numbers, it is hard to fathom why Mr. Isaac is buying shares.

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

    P/E: N/A Forward P/E: N/A Industry P/E: 35.56
    P/S: 9.77 Price/Book: 3.16 EV/EBITDA: -9.71
    Market Cap: $42.55M Avg. Daily Volume: 524,912 52 Week Range: $0.94 – $11.94

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

    Notable Insider Sales:

    1. Honeywell International Inc. (HON): $94.7

    Shares of this industrial technology and manufacturing company were sold by 3 insiders:

    • SVP-HR Procurement & Communications Mark R. James sold 123,174 shares for $92.92, generating $11.45 million from the sale. 80,000 of these shares were sold as a result of exercising options immediately prior to the sale.
    • Vice Chairman Roger Fradin sold 88,677 shares for $93.84, generating $8.32 million from the sale.
    • President & CEO, ACS Alexandre Ismail sold 53,831 shares for $92.68, generating $4.99 million from the sale.

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

    P/E: 17.8 Forward P/E: 15.5 Industry P/E: 22.71
    P/S: 1.81 Price/Book: 3.87 EV/EBITDA: 10.68
    Market Cap: $74.13B Avg. Daily Volume: 3,050,130 52 Week Range: $82.89 – $98.09

    2. Monsanto Company (MON): $113.28

    Chairman & CEO Hugh Grant sold 90,000 shares of this agricultural products company for $112.38, generating $10.11 million from the sale.

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

    P/E: 21.72 Forward P/E: 16.61 Industry P/E: 17.26
    P/S: 3.59 Price/Book: 7.24 EV/EBITDA: 13.1
    Market Cap: $57.23B Avg. Daily Volume: 4,188,780 52 Week Range: $102.88 – $128.79

    3. ServiceNow, Inc. (NOW): $65.45

    Shares of this software-as-a-service provider were sold by 2 insiders:

    • Chief Product Officer Frederic B. Luddy sold 151,400 shares for $59.74, generating $9.04 million from the sale. 1,400 of these shares were sold indirectly by Mr. Luddy’s spouse and 50,000 shares were sold indirectly by Frederic B. Luddy CRT, LLC.
    • Chief Financial Officer Michael Scarpelli sold 10,000 shares for $60.00, generating $600,000 from the sale.

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

    P/E: N/A Forward P/E: 327.25 Industry P/E: 17
    P/S: 15.49 Price/Book: 22.63 EV/EBITDA: -93.6
    Market Cap: $9.58B Avg. Daily Volume: 1,403,980 52 Week Range: $44.17 – $71.8

    4. Salesforce.com, Inc (CRM): $59.57

    Shares of this software-as-a-service (SaaS) provider were sold by 4 insiders:

    • Chairman of the Board & CEO Marc Benioff sold 100,000 shares for $57.28, generating $5.73 million from the sale.
    • Co-Founder Parker Harris sold 11,333 shares for $56.99, generating $645,819 from the sale. These shares were sold as a result of exercising options immediately prior to the sale.
    • Chief Operating Officer George Hu sold 10,500 shares for $56.50, generating $593,236 from the sale. These shares were sold as a result of exercising options immediately prior to the sale.
    • Pres, Applications & Platform Alexandre Dayon sold 2,504 shares for $56.67, generating $141,914 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 Salesforce.com, Inc here.

    P/E: N/A Forward P/E: 83.9 Industry P/E: 35.99
    P/S: 7.52 Price/Book: 10.86 EV/EBITDA: 12
    Market Cap: $36.87B Avg. Daily Volume: 4,919,020 52 Week Range: $48.18 – $67

    5. SolarCity Corporation (SCTY): $54.25

    Shares of this solar systems installer were sold by 2 insiders:

    • Chief Technology Officer Peter J. Rive sold 125,000 shares for $52.47, generating $6.56 million from the sale. 37,500 of these shares were sold as a result of exercising options immediately prior to the sale.
    • EVP, General Counsel Seth R. Weissman sold 7,000 shares for $53.12, generating $371,866 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 SolarCity Corporation here.

    P/E: N/A Forward P/E: N/A Industry P/E: 20.03
    P/S: 22.71 Price/Book: 8.4 EV/EBITDA: -34.11
    Market Cap: $5.03B Avg. Daily Volume: 4,321,750 52 Week Range: $42.38 – $88.35

    You can view the full list of sales from this Insider Sales page.

    Connect with me on LinkedIn: http://www.linkedin.com/in/asifsuria

    Insider Weekends – October 17, 2014

    Welcome to edition 226 of Insider Weekends. Insider buying increased significantly last week with insiders buying $165.25 million of stock compared to $51.96 million in the week prior. Selling also increased with insiders selling $653.17 million of stock last week compared to $495.08 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 down to 3.95. In other words, insiders sold  almost 4 times as much stock as they purchased. This is the lowest sell/buy ratio we have seen since January 2013 and is partially driven by low insider selling during earnings season.

    The Sell/Buy ratio this week compares favorably with the prior week, when the ratio stood at 9.53. 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.

    Insider Sell Buy Ratio October 17, 2014

    Insider Sell Buy Ratio October 17, 2014

    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. Energy Transfer Equity, L.P. (ETE): $57.65

    Director Kelcy L. Warren acquired 1,200,000 shares of this natural gas pipeline company, paying $51.22 per share for a total amount of $61.47 million. These shares were acquired indirectly by Kelcy Warren Partners, L.P.

    You can view the list of recent insider transactions for Energy Transfer Equity, L.P. here.

    P/E: 103.32 Forward P/E: 31.68 Industry P/E: 32.19
    P/S: 0.59 Price/Book: 52.93 EV/EBITDA: 14.01
    Market Cap: $31.34B Avg. Daily Volume: 1,851,500 52 Week Range: $33 – $63.53

    2. AGCO Corporation (AGCO): $43.53

    Director Mallika Srinivasan acquired 319,064 shares of this farm & construction machinery company, paying $43.60 per share for a total amount of $13.9 million. These shares were purchased indirectly by Chennai, India based TAFE Motors and Tractors Limited.

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

    P/E: 7.97 Forward P/E: 12.44 Industry P/E: 14.33
    P/S: 0.41 Price/Book: 1.05 EV/EBITDA: 4.57
    Market Cap: $4.08B Avg. Daily Volume: 1,577,770 52 Week Range: $41.83 – $64.6

    3. Acuity Brands, Inc. (AYI): $128.58

    Director James H. Hance Jr. acquired 8,000 shares of this lighting fixtures company, paying $122.94 per share for a total amount of $983,520. Mr. Hance increased his stake by 4848.48% to 8,165 shares with this purchase.

    Mr. Hance joined the Board of Directors of Acuity Brands in August 2014 and is an operating executive of The Carlyle Group.

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

    P/E: 31.75 Forward P/E: 20.98 Industry P/E: 18.57
    P/S: 2.27 Price/Book: 4.67 EV/EBITDA: 15.53
    Market Cap: $5.52B Avg. Daily Volume: 377,358 52 Week Range: $98.29 – $146.28

    4. Opko Health, Inc. (OPK): $8.25

    CEO & Chairman Phillip Frost M.D. acquired 74,000 shares of this medical devices and drug development company, paying $8.23 per share for a total amount of $609,108. These shares were purchased indirectly by Frost Gamma Investments Trust.

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

    P/E: N/A Forward P/E: N/A Industry P/E: N/A
    P/S: 40.92 Price/Book: 3.86 EV/EBITDA: -40.91
    Market Cap: $3.54B Avg. Daily Volume: 2,298,790 52 Week Range: $7.32 – $11.64

    5. Devon Energy Corporation (DVN): $58.17

    Director John E. Bethancourt acquired 9,150 shares of this independent oil and natural gas company, paying $54.64 per share for a total amount of $499,972. Mr. Bethancourt increased his stake by 182.49% to 14,164 shares with this purchase.

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

    P/E: 14.49 Forward P/E: 9.86 Industry P/E: 19.65
    P/S: 1.59 Price/Book: 1.08 EV/EBITDA: 5.84
    Market Cap: $23.80B Avg. Daily Volume: 3,219,270 52 Week Range: $53.34 – $80.63

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

    Notable Insider Sales:

    1. Vornado Realty Trust (VNO): $104.67

    Director Michael D. Fascitelli sold 400,000 shares of this commercial REIT for $101.39, generating $40.56 million from the sale. 100,000 of these shares were sold indirectly by an LP.

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

    P/E: 128.12 Forward P/E: 20.05 Industry P/E: 17.58
    P/S: 7.62 Price/Book: 3.76 EV/EBITDA: 23.86
    Market Cap: $19.64B Avg. Daily Volume: 834,277 52 Week Range: $86.2 – $109.12

    2. Cantel Medical Corp. (CMN): $36.8

    Shares of this infection prevention and control products provider were sold by 8 insiders:

    • Director Alan J. Hirschfield sold 50,000 shares for $37.73, generating $1.89 million from the sale.
    • President and CEO Andrew A. Krakauer sold 37,267 shares for $36.97, generating $1.38 million from the sale.
    • Chairman Charles M. Diker sold 30,000 shares for $38.39, generating $1.15 million from the sale.
    • Senior VP and General Counsel Eric W. Nodiff sold 5,000 shares for $38.76, generating $193,778 from the sale.
    • Director Ann E. Berman sold 3,750 shares for $37.00, generating $138,750 from the sale.
    • Executive VP and COO Jorgen B. Hansen sold 2,000 shares for $37.53, generating $75,060 from the sale.
    • Vice President and Controller Steven C. Anaya sold 2,000 shares for $39.50, generating $79,000 from the sale.
    • Senior Vice President Seth M. Yellin sold 800 shares for $38.81, generating $31,044 from the sale.

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

    P/E: 35.38 Forward P/E: 23.9 Industry P/E: 27.99
    P/S: 3.15 Price/Book: 4.18 EV/EBITDA: 16.88
    Market Cap: $1.51B Avg. Daily Volume: 89,537 52 Week Range: $29.6 – $40.19

    3. CSX Corp. (CSX): $33.86

    Shares of this railroad company were sold by 2 insiders:

    • Executive Vice President & COO Oscar Munoz sold 75,000 shares for $33.76, generating $2.53 million from the sale.
    • EVP & Chief Financial Officer Fredrik J. Eliasson sold 40,000 shares for $33.53, generating $1.34 million from the sale.

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

    P/E: 18.3 Forward P/E: 15.68 Industry P/E: 21.45
    P/S: 2.63 Price/Book: 2.96 EV/EBITDA: 9.06
    Market Cap: $33.83B Avg. Daily Volume: 6,731,470 52 Week Range: $25.58 – $34.09

    4. Douglas Emmett Inc (DEI): $26.49

    Chairman of the Board Dan A. Emmett sold 140,000 shares of this apartment REIT for $26.31, generating $3.68 million from the sale. These shares were sold indirectly through a trust.

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

    P/E: 84.36 Forward P/E: 15.67 Industry P/E: 17.58
    P/S: 6.36 Price/Book: 1.94 EV/EBITDA: 19.66
    Market Cap: $3.82B Avg. Daily Volume: 748,017 52 Week Range: $22.27 – $29.56

    5. Hanesbrands Inc. (HBI): $104.46

    CEO Richard A. Noll sold 30,000 shares of this apparel company for $104.00, generating $3.12 million from the sale.

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

    P/E: 30.1 Forward P/E: 16.45 Industry P/E: 19
    P/S: 2.11 Price/Book: 7.48 EV/EBITDA: 15.73
    Market Cap: $10.41B Avg. Daily Volume: 739,880 52 Week Range: $62.03 – $112.4

    You can view the full list of sales from this Insider Sales page.

    Connect with me on LinkedIn: http://www.linkedin.com/in/asifsuria

    Insider Weekends – October 10, 2014

    Welcome to edition 225 of Insider Weekends. Insider buying decreased last week with insiders buying $51.96 million of stock compared to $72.32 million in the week prior. Selling increased with insiders selling $495.08 million of stock last week compared to $432.89 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 went up to 9.53. In other words, insiders sold  almost 10 times as much stock as they purchased. The Sell/Buy ratio this week compares unfavorably with the prior week, when the ratio stood at 5.99. 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.

    Insider Sell Buy Ratio October 10, 2014

    Insider Sell Buy Ratio October 10, 2014

    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:

    In addition to the top 5 insider purchases listed below, other purchases that caught our eye this week include a small purchase of Sears Holdings (SHLD) by Bruce Berkowitz of Fairholme Capital Management fame, a purchase by the CFO of EP Energy Corporation (EPE) and a purchase by the CTO of online auto auctions company Copart (CPRT).

    1. AGCO Corporation (AGCO): $42.08

    Director Mallika Srinivasan acquired 488,514 shares of this farm & construction machinery company, paying $43.85 per share for a total amount of $21.42 million. These shares were purchased indirectly by Chennai, India based TAFE Motors and Tractors Limited.

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

    P/E: 7.71 Forward P/E: 11.79 Industry P/E: 15.08
    P/S: 0.38 Price/Book: 0.99 EV/EBITDA: 4.44
    Market Cap: $3.95B Avg. Daily Volume: 1,523,370 52 Week Range: $41.83 – $64.6

    2. SFX Entertainment Inc. (SFXE): $4.35

    CEO and Chairman of the Board Robert F. Sillerman acquired 575,000 shares of this live events and digital entertainment producer, paying $4.91 per share for a total amount of $2.82 million. These shares were acquired indirectly by Sillerman Investment Company III LLC

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

    P/E: N/A Forward P/E: N/A Industry P/E: 19.86
    P/S: 1.58 Price/Book: 1.59 EV/EBITDA: -6.61
    Market Cap: $388.23M Avg. Daily Volume: 575,109 52 Week Range: $3.52 – $12.15

    3. Opko Health, Inc. (OPK): $8.16

    CEO & Chairman Phillip Frost M.D. acquired 110,000 shares of this medical devices and drug development company, paying $8.34 per share for a total amount of $917,753. These shares were purchased indirectly by Frost Gamma Investments Trust.

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

    P/E: N/A Forward P/E: N/A Industry P/E: 27.09
    P/S: 40.73 Price/Book: 3.84 EV/EBITDA: -40.46
    Market Cap: $3.50B Avg. Daily Volume: 2,339,900 52 Week Range: $7.32 – $12.95

    4. Intevac Inc. (IVAC): $6.84

    Director Matthew A. Drapkin acquired 100,139 shares of this thin film and photonics equipment manufacturer, paying $6.85 per share for a total amount of $685,652. These shares were purchased indirectly by Becker Drapkin Partners, L.P.

    We highlighted Becker Drapkin’s purchases of Intevac twice in August.

    Becker Drapkin Partners is an activist fund that tends to focus on small cap companies. Some of their other purchases we have covered in the past include Hot Topic (HOTT) and Glu Mobile (GLUU).

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

    P/E: N/A Forward P/E: N/A Industry P/E: 18.77
    P/S: 2.21 Price/Book: 1.31 EV/EBITDA: -9.94
    Market Cap: $161.60M Avg. Daily Volume: 152,280 52 Week Range: $4.82 – $10.2

    5. Ligand Pharmaceuticals Incorporated (LGND): $44.44

    Director Jason Aryeh acquired 11,000 shares of this biotech company, paying $42.99 per share for a total amount of $472,890. These shares were acquired indirectly by certain funds managed by JALAA Equities, LP.

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

    P/E: 123.1 Forward P/E: 18.52 Industry P/E: 30.18
    P/S: 16.21 Price/Book: 13.72 EV/EBITDA: 46.65
    Market Cap: $923.46M Avg. Daily Volume: 450,031 52 Week Range: $41.99 – $80.42

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

    Notable Insider Sales:

    1. G-III Apparel Group, Ltd. (GIII): $82.2

    Shares of this apparel chain were sold by 6 insiders:

    • Vice Chairman Sammy Aaron sold 43,112 shares for $82.20, generating $3.54 million from the sale.
    • Chief Executive Officer Morris Goldfarb sold 25,000 shares for $81.75, generating $2.04 million from the sale.
    • Chief Operating Officer Wayne S. Miller sold 6,565 shares for $81.75, generating $536,693 from the sale.
    • Chief Financial Officer/Treas Neal Nackman sold 4,743 shares for $81.48, generating $386,447 from the sale.
    • Director Jeffrey David Goldfarb sold 3,742 shares for $81.75, generating $305,911 from the sale.
    • Director Katz Jeanette Nostra sold 460 shares for $81.75, generating $37,605 from the sale.

    You can view the list of recent insider transactions for G-III Apparel Group, Ltd. here.

    P/E: 21.75 Forward P/E: 16.84 Industry P/E: 21.69
    P/S: 0.95 Price/Book: 2.74 EV/EBITDA: 12.4
    Market Cap: $1.84B Avg. Daily Volume: 215,342 52 Week Range: $52.71 – $92

    2. SunPower Corporation (SPWR): $28.49

    Chief Operating Officer Marty T. Neese sold 223,663 shares of this solar systems manufacturer for $29.07, generating $6.5 million from the sale.

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

    P/E: 20.99 Forward P/E: 16.56 Industry P/E: 21.62
    P/S: 1.54 Price/Book: 2.85 EV/EBITDA: 12.04
    Market Cap: $3.74B Avg. Daily Volume: 1,937,070 52 Week Range: $25.38 – $42.07

    3. Salesforce.com, Inc (CRM): $54.77

    Shares of this Software as a Service (SaaS) provider were sold by 2 insiders:

    • Chairman of the Board & CEO Marc Benioff sold 100,000 shares for $57.35, generating $5.73 million from the sale.
    • Chief Operating Officer George Hu sold 10,500 shares for $57.58, generating $604,571 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 Salesforce.com, Inc here.

    P/E: N/A Forward P/E: 77.14 Industry P/E: 36.87
    P/S: 7.42 Price/Book: 10.71 EV/EBITDA: 11.38
    Market Cap: $33.90B Avg. Daily Volume: 4,650,870 52 Week Range: $48.18 – $67

    4. SolarCity Corporation (SCTY): $53.55

    Chief Executive Officer Lyndon R. Rive sold 100,000 shares of this solar systems installer for $57.92, generating $5.79 million from the sale. These shares were sold indirectly through a trust and 30,000 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 SolarCity Corporation here.

    P/E: N/A Forward P/E: N/A Industry P/E: 21.62
    P/S: 22.79 Price/Book: 8.43 EV/EBITDA: -33.79
    Market Cap: $4.96B Avg. Daily Volume: 4,021,320 52 Week Range: $42.38 – $88.35

    5. Facebook, Inc. (FB): $72.91

    Shares of Facebook were sold by 2 insiders:

    • VP Marketing & Business Partnerships David B. Fischer sold 36,000 shares for $76.57, generating $2.76 million from the sale.
    • Chief Technology Officer Michael Todd Schroepfer sold 35,000 shares for $77.07, generating $2.69 million from the sale.

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

    P/E: 77.48 Forward P/E: 35.74 Industry P/E: 32
    P/S: 19.71 Price/Book: 10.61 EV/EBITDA: 32.43
    Market Cap: $189.57B Avg. Daily Volume: 35,843,300 52 Week Range: $43.55 – $79.71

    You can view the full list of sales from this Insider Sales page.

    Connect with me on LinkedIn: http://www.linkedin.com/in/asifsuria

    Insider Weekends – October 3, 2014

    Welcome to edition 224 of Insider Weekends. Insider buying increased last week with insiders buying $72.32 million of stock compared to $30.92 million in the week prior. Selling decreased with insiders selling $432.89 million of stock last week compared to $587.59 million in the week prior.

    Insider buying has been lackluster over the last eight weeks and with the start of a new quarter, insider transactions will likely remain anemic for the next few weeks. Whether this decline in insider buying combined with an erratic market and increase in volatility marks an intermediate market top remains to be seen.

    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 5.99. In other words, insiders sold  almost 6 times as much stock as they purchased. The Sell/Buy ratio this week compares favorably with the prior week, when the ratio stood at 19. 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.

    Insider Sell Buy Ratio October 3, 2014

    Insider Sell Buy Ratio October 3, 2014

    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. AGCO Corporation (AGCO): $46.44

    Director Mallika Srinivasan acquired 1,291,000 shares of this farm & construction machinery company, paying $45.87 per share for a total amount of $59.22 million. These shares were purchased indirectly by Chennai, India based TAFE Motors and Tractors Limited.

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

    P/E: 8.51 Forward P/E: 10.23 Industry P/E: 15.02
    P/S: 0.41 Price/Book: 1.07 EV/EBITDA: 4.82
    Market Cap: $4.36B Avg. Daily Volume: 1,362,570 52 Week Range: $45 – $64.6

    2. Opko Health, Inc. (OPK): $8.38

    CEO & Chairman Phillip Frost M.D. acquired 124,000 shares of this medical devices and drug development company, paying $8.43 per share for a total amount of $1.05 million. These shares were purchased indirectly by Frost Gamma Investments Trust.

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

    P/E: N/A Forward P/E: N/A Industry P/E: 26.44
    P/S: 40.97 Price/Book: 3.86 EV/EBITDA: -41.56
    Market Cap: $3.60B Avg. Daily Volume: 2,384,880 52 Week Range: $7.32 – $12.95

    3. Synta Pharmaceuticals Corp. (SNTA): $3.21

    Director Bruce Kovner acquired 300,000 shares of this biotech company, paying $3.08 per share for a total amount of $923,130. These shares were purchased indirectly by KHO Holdings

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

    P/E: N/A Forward P/E: N/A Industry P/E: 33.32
    P/S: N/A Price/Book: 4.33 EV/EBITDA: -2.77
    Market Cap: $335.02M Avg. Daily Volume: 1,555,000 52 Week Range: $2.78 – $7.22

    4. Civeo Corporation (CVEO): $13.01

    Shares of this workforce accommodations provider were acquired by 3 insiders:

    • President and Chief Executive Officer Bradley J. Dodson acquired 24,000 shares, paying $12.86 per share for a total amount of $308,640. Mr. Dodson increased his stake by 8.04% to 322,519 shares with this purchase.
    • Director Gary L. Rosenthal acquired 8,000 shares, paying $12.21 per share for a total amount of $97,680. Mr. Rosenthal increased his stake by 14.57% to 62,919 shares with this purchase.
    • Director Mayank Ashar acquired 8,000 shares, paying $12.81 per share for a total amount of $102,480. Mr. Ashar increased his stake by 147.57% to 13,421 shares with this purchase.

    These insider purchases follow a more than 50% plunge in the stock price last week after the company decided not to pursue a REIT conversion and instead decided to move its headquarters to Canada. The company derives 90% of its revenue outside the United States with a specific focus on Canadian oil sands and natural resource rich regions on Australia. The company expects a tax rate of 25 to 26% with this move.

    Civeo sports a dividend yield of 4% and trades for just 5 times EBITDA. The company is expecting a weak Q4 and is guiding towards lower revenue and margins in 2015 as well.

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

    P/E: 10.28 Forward P/E: 37.17 Industry P/E: N/A
    P/S: 1.36 Price/Book: 1.02 EV/EBITDA: 5.06
    Market Cap: $1.39B Avg. Daily Volume: 1,620,790 52 Week Range: $11.6 – $28.4

    5. Univest Corporation of Pennsylvania (UVSP): $19.01

    Director Thomas Scannapieco acquired 16,000 shares of this regional bank, paying $18.93 per share for a total amount of $302,948. These shares were purchased indirectly by Mr. Scannapieco’s spouse.

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

    P/E: 14.4 Forward P/E: 11.32 Industry P/E: 14.36
    P/S: 2.74 Price/Book: 1.07 EV/EBITDA: N/A
    Market Cap: $308.30M Avg. Daily Volume: 28,280 52 Week Range: $17.67 – $21.54

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

    Notable Insider Sales:

    1. Iron Mountain Inc. (IRM): $33.1

    Director Vincent J. Ryan sold 600,000 shares of this storage and information management services provider for $33.65, generating $20.19 million from the sale. These shares were sold indirectly through a trust.

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

    P/E: 17.44 Forward P/E: 24.34 Industry P/E: 23.67
    P/S: 2.05 Price/Book: 4.89 EV/EBITDA: 11.82
    Market Cap: $6.39B Avg. Daily Volume: 1,833,980 52 Week Range: $23.13 – $34.31

    2. Lions Gate Entertainment Corp. (LGF): $32.87

    Shares of this movie production and distribution company were sold by 2 insiders:

    • Chief Executive Officer Jon Feltheimer sold 250,000 shares for $32.08, generating $8.02 million from the sale.
    • Co-Chief Operating Officer Brian Goldsmith sold 25,000 shares for $32.08, generating $802,045 from the sale.

    You can view the list of recent insider transactions for Lions Gate Entertainment Corp. here.

    P/E: 26.96 Forward P/E: 18.26 Industry P/E: 22.82
    P/S: 1.78 Price/Book: 8.36 EV/EBITDA: 20.26
    Market Cap: $4.51B Avg. Daily Volume: 1,231,620 52 Week Range: $24.54 – $37.75

    3. Accenture plc (ACN): $80.32

    Shares of this management and technology consulting company were sold by 6 insiders:

    • Chairman & CEO Pierre Nanterme sold 44,552 shares for $78.98, generating $3.52 million from the sale.
    • Group Chief Exec-Growth Markets Gianfranco Casati sold 27,121 shares for $78.94, generating $2.14 million from the sale. These shares were sold as a result of exercising options immediately prior to the sale.
    • Group Chief Exec-Com, Med & Tech Robert E. Sell sold 10,934 shares for $78.91, generating $862,845 from the sale. These shares were sold as a result of exercising options immediately prior to the sale.
    • Chief Financial Officer David Rowland sold 6,335 shares for $78.93, generating $500,015 from the sale.
    • Chief Accounting Officer Richard P. Clark sold 5,000 shares for $79.10, generating $395,494 from the sale.
    • Chief Operating Officer Johan Deblaere sold 1,600 shares for $79.07, generating $126,510 from the sale.

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

    P/E: 17.77 Forward P/E: 15.3 Industry P/E: 17.47
    P/S: 1.67 Price/Book: 8.75 EV/EBITDA: 9.34
    Market Cap: $50.70B Avg. Daily Volume: 2,586,520 52 Week Range: $69.78 – $85.88

    4. Alleghany Corporation (Y): $424.79

    Director Jefferson Kirby sold 12,000 shares of this insurance company for $420.35, generating $5.04 million from the sale.

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

    P/E: 10.53 Forward P/E: 14.34 Industry P/E: 11.97
    P/S: 1.34 Price/Book: 0.93 EV/EBITDA: 6.65
    Market Cap: $6.95B Avg. Daily Volume: 47,954 52 Week Range: $361.01 – $445.99

    5. Micron Technology, Inc. (MU): $33.94

    Shares of this semiconductor company were sold by 2 insiders:

    • President Mark Adams sold 63,000 shares for $34.48, generating $2.17 million from the sale.
    • CFO & VP of Finance Ronald C. Foster sold 50,000 shares for $34.41, generating $1.72 million from the sale.

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

    P/E: 13.36 Forward P/E: 8.26 Industry P/E: 17.09
    P/S: 2.21 Price/Book: 3.35 EV/EBITDA: 7.06
    Market Cap: $36.25B Avg. Daily Volume: 24,011,800 52 Week Range: $16.17 – $34.85

    You can view the full list of sales from this Insider Sales page.

    Connect with me on LinkedIn: http://www.linkedin.com/in/asifsuria

    Insider Weekends – September 26, 2014

    Welcome to edition 223 of Insider Weekends. Insider buying decreased last week with insiders buying $30.92 million of stock compared to $49.49 million in the week prior. Selling increased with insiders selling $587.59 million of stock last week compared to $469.15 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 went up to 19. In other words, insiders sold 19 times as much stock as they purchased. The Sell/Buy ratio this week compares unfavorably with the prior week, when the ratio stood at 9.48. 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.

    Insider Sell Buy Ratio September 26, 2014

    Insider Sell Buy Ratio September 26, 2014

    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. American Eagle Outfitters, Inc. (AEO): $14.67

    Executive Chairman & Interim CEO Jay L. Schottenstein acquired 500,000 shares of this apparel chain, paying $14.48 per share for a total amount of $7.24 million. These shares were purchased indirectly by SEI, Inc.

    The last 5 years have been difficult for teen and young adult retailers like American Eagle Outfitters (AEO), Aeropostale (ARO), Abercrombie & Fitch (ANF) and Urban Outfitters (URBN). The stocks of these companies have been blissfully unaware of the raging bull market we have experienced and companies like American Eagle Outfitters and Aeropostale have seen their stocks drop 8.7% and 88% respectively over the last 5 years. Aeropostale turned out to be the classic definition of a value trap where the stock looked incredibly cheap while looking in the rear view mirror even as the business fundamentals continued to deteriorate.

    This is the second large purchase by Mr. Schottenstein this year and follows his $6.42 million purchase at an average price of $12.84/share in January.  Two other directors also picked up shares but their purchases were much smaller.

    With same store sales (SSS) declining 8% in its flagship brand and a 2.3% drop in revenue last quarter despite heavy promotions, it does not look like American Eagle Outfitters is out of the woods yet. On the positive side, the company has $263 million in net cash on its balance sheet, their intimates brand Aerie is doing well with 9% SSS growth and international sales are growing. Free cash flow has been negative on account of high CapEx this year but the company expects CapEx to drop to $150 million in 2015 from the $230 million they expect to spend this year.

    You can view the list of recent insider transactions for American Eagle Outfitters, Inc. here.

    P/E: 62.96 Forward P/E: 19.05 Industry P/E: 19.09
    P/S: 0.86 Price/Book: 2.47 EV/EBITDA: 8.53
    Market Cap: $2.85B Avg. Daily Volume: 5,498,830 52 Week Range: $10.12 – $16.95

    2. Continental Resources, Inc. (CLR): $68.32

    CEO & Chairman Harold Hamm acquired 71,999 shares of this independent oil & gas company, paying $67.45 per share for a total amount of $4.86 million. Mr. Hamm increased his stake by 0.03% to 252,956,381 shares with this purchase.

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

    P/E: 40.19 Forward P/E: 17.08 Industry P/E: 22.81
    P/S: 5.97 Price/Book: 5.73 EV/EBITDA: 11.62
    Market Cap: $25.20B Avg. Daily Volume: 1,932,530 52 Week Range: $50.12 – $80.91

    3. Restoration Hardware Holdings, Inc. (RH): $80.31

    Chairman & CEO Gary G. Friedman acquired 25,974 shares of this home furnishing company, paying $76.82 per share for a total amount of $1.99 million. Mr. Friedman increased his stake by 1.13% to 2,334,533 shares with this purchase.

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

    P/E: 51.28 Forward P/E: 27.22 Industry P/E: 20.5
    P/S: 1.9 Price/Book: 5.16 EV/EBITDA: 16.42
    Market Cap: $3.17B Avg. Daily Volume: 1,112,230 52 Week Range: $54.61 – $94.5

    4. La Jolla Pharmaceutical Co. (LJPC): $9.25

    Shares of this biotech company were acquired by 2 insiders:

    • Director Kevin C. Tang acquired 169,555 shares, paying $9.14 per share for a total amount of $1.55 million. These shares were purchased indirectly by Tang Capital Partners, LP.
    • President, CEO & Secretary George F. Tidmarsh acquired 5,000 shares, paying $9.18 per share for a total amount of $45,900. Mr. Tidmarsh increased his stake by 0.35% to 1,415,086 shares with this purchase.

    The 52 week range numbers provided by Yahoo look suspect and are probably incorrect on account of a 1 for 50 reverse stock split.

    You can view the list of recent insider transactions for La Jolla Pharmaceutical Co. here.

    P/E: N/A Forward P/E: N/A Industry P/E: 29.41
    P/S: N/A Price/Book: N/A EV/EBITDA: -6.86
    Market Cap: $140.91M Avg. Daily Volume: 556,111 52 Week Range: $0.16 – $19.5

    5. Opko Health, Inc. (OPK): $8.6

    CEO & Chairman Phillip Frost M.D. acquired 115,100 shares of this medical devices and drug development company, paying $8.36 per share for a total amount of $962,694.

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

    P/E: N/A Forward P/E: N/A Industry P/E: 26.79
    P/S: 42.01 Price/Book: 3.96 EV/EBITDA: -42.65
    Market Cap: $3.69B Avg. Daily Volume: 2,330,310 52 Week Range: $7.32 – $12.95

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

    Notable Insider Sales:

    1. Facebook, Inc. (FB): $78.79

    Shares of Facebook were sold by 2 insiders:

    • Chief Operating Officer Sheryl Sandberg sold 283,334 shares for $78.17, generating $22.15 million from the sale.
    • Chief Technology Officer Michael Todd Schroepfer sold 35,000 shares for $77.00, generating $2.69 million from the sale.

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

    P/E: 83.73 Forward P/E: 38.81 Industry P/E: 34
    P/S: 20.05 Price/Book: 10.8 EV/EBITDA: 35.25
    Market Cap: $204.86B Avg. Daily Volume: 36,622,900 52 Week Range: $43.55 – $78.94

    2. Alexion Pharmaceuticals, Inc. (ALXN): $167.65

    Shares of this biotech company were sold by 2 insiders:

    • CEO Leonard Bell sold 60,000 shares for $165.12, generating $9.91 million from the sale.
    • EVP, Chief Global Operations Officer Stephen P. Squinto sold 76 shares for $159.50, generating $12,122 from the sale.

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

    P/E: 84.04 Forward P/E: 29.16 Industry P/E: 29.41
    P/S: 17.08 Price/Book: 11.39 EV/EBITDA: 40.69
    Market Cap: $33.16B Avg. Daily Volume: 1,164,340 52 Week Range: $100.89 – $185.43

    3. Carnival Corporation (CCL): $40.87

    Chairman of the Board Micky Meir Arison sold 212,474 shares of this cruise ship operator for $40.22, generating $8.55 million from the sale. These shares were sold indirectly by various trusts and entities.

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

    P/E: 22.58 Forward P/E: 17.93 Industry P/E: 24.67
    P/S: 1.99 Price/Book: 1.25 EV/EBITDA: 11.56
    Market Cap: $31.76B Avg. Daily Volume: 3,491,730 52 Week Range: $31.44 – $42.31

    4. Jazz Pharmaceuticals Public Limited Company (JAZZ): $160.53

    Director Seamus Mulligan sold 50,000 shares of this biotech company for $163.16, generating $8.16 million from the sale.

    You can view the list of recent insider transactions for Jazz Pharmaceuticals Public Limited Company here.

    P/E: 118.65 Forward P/E: 15.91 Industry P/E: 29.41
    P/S: 9.57 Price/Book: 7.53 EV/EBITDA: 20.57
    Market Cap: $9.67B Avg. Daily Volume: 965,859 52 Week Range: $80.4 – $176.6

    5. Salesforce.com, Inc (CRM): $56.56

    Chairman of the Board & CEO Marc Benioff sold 100,000 shares of this Software as a Service (SaaS) provider for $56.89, generating $5.69 million from the sale.

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

    P/E: N/A Forward P/E: 79.66 Industry P/E: 37.26
    P/S: 7.26 Price/Book: 10.49 EV/EBITDA: 11.73
    Market Cap: $35.01B Avg. Daily Volume: 4,705,350 52 Week Range: $48.18 – $67

    You can view the full list of sales from this Insider Sales page.

    Connect with me on LinkedIn: http://www.linkedin.com/in/asifsuria