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Welcome to edition twenty one of Insider Weekends. Insider buying increased slightly last week with insiders purchasing $3.42 million of their stock when compared to $3.05 million in the week prior. Selling also increased with insiders selling $987.33 million worth of stock when compared to $567.34 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 buying in that week. The adjusted ratio for last week went up to 289.1. In other words, insiders sold more than 289 times as much stock as they purchased. The Sell/Buy ratio this week compares unfavorably with the week prior when the ratio stood at 186.1. 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 29, 2010

Insider Sell Buy Ratio October 29, 2010

Note: As mentioned in the first post in this series Introduction to Insider Weekends, 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 Express Company (AXP): $41.46

Director Theodore Leonsis acquired 20,000 shares of AmEx, paying $39.38 per share for a total amount of $787,648. Two other directors have purchased stock since the start of the year.

P/E: 13.5 Forward P/E: 11.12 Industry P/E: 11.75
P/S: 2.04 Price/Book: 3.1 EV/EBITDA: N/A
Market Cap: $49.92B Avg. Daily Volume: 12,013,100 52 Week Range: $34.58 – $49.19

2. Liberty Property Trust (LRY): $33.46

Director Stephen Steinour acquired 11,800 shares of this REIT, paying $33.48 per share for a total amount of $395,064. Mr. Steinour more than doubled his holdings to 22,855 shares following this purchase. This is the second purchase by him this year following a February purchase of 10,000 shares. Most of the other insider transactions have been sales. This office REIT has a yield of 5.64%, which is much better than the yield of most REITs.

P/E: 83.23 Forward P/E: 12.35 Industry P/E: 50.19
P/S: 5.07 Price/Book: 1.83 EV/EBITDA: 13.1
Market Cap: $3.81B Avg. Daily Volume: 990,026 52 Week Range: $27.18 – $35.35

3. Beneficial Mutual Bancorp Inc. (BNCL): $7.34

Shares of this bank holding company were acquired by two insiders:

  • Director Michael Morris acquired 15,000 shares, paying $7.40 per share for a total amount of $110,950
  • Director George Nise acquired 8,000 shares, paying $7.40 per share for a total amount of $59,217
P/E: N/A Forward P/E: 30.58 Industry P/E: 15.03
P/S: 5.33 Price/Book: 0.89 EV/EBITDA: N/A
Market Cap: $569.15M Avg. Daily Volume: 120,011 52 Week Range: $7.2 – $11.05

4. QLogic Corp. (QLGC): $17.58

Director William Zeitler acquired 10,000 shares of this semiconductor company, paying $16.93 per share for a total amount of $169,300. Mr. Zeitler was appointed as a director last month and hence I would not read too much into this purchase.

P/E: 25.22 Forward P/E: 12.04 Industry P/E: 22.16
P/S: 3.2 Price/Book: 3.48 EV/EBITDA: 9.47
Market Cap: $1.90B Avg. Daily Volume: 2,612,120 52 Week Range: $14.3 – $22.4

5. Lakeland Bancorp Inc. (LBAI): $9.27

Director Stephen R Tilton Sr acquired 13,100 shares of this bank holding company, paying $9.14 per share for a total amount of $119,734.

This regional bank stands out amongst the rest of its group because the company recently increased its dividend by 20% to 24 cents per year. The yield following this increase is 2.58%. According to the company, the book value per share is $9.28. On August 4th the bank paid back $20 million of the $59 million in TARP funds it had taken in February 2009. The Troubled Asset Ratio (TAR) for this New Jersey based bank is 15.20, very close to the national median of 15.

P/E: 18.36 Forward P/E: 11.3 Industry P/E: 15.03
P/S: 2.22 Price/Book: 0.99 EV/EBITDA: N/A
Market Cap: $223.05M Avg. Daily Volume: 41,002 52 Week Range: $5.38 – $11.35

Notable Insider Sales:

1. Oracle Corp. (ORCL): $29.38

Shares of this enterprise software company were sold by four insiders:

  • Chief Executive Officer Lawrence Joseph Ellison sold 7 million shares for $28.95 per share, generating a total amount of $202.62 million.
  • Executive Vice President – Ops Charles Rozwat sold 250,000 shares for $29.14 per share, generating a total amount of $7.28 million. This sale was as a result of exercising options immediately prior to the sale.
  • Director Raymond Bingham sold 30,000 shares for $29.05 per share, generating a total amount of $871,500. This sale was as a result of exercising options immediately prior to the sale.
  • Executive Vice President – Ops Keith Block sold 5,532 shares, for $28.93 per share, generating a total amount of $160,041.
P/E: 23.45 Forward P/E: 13.42 Industry P/E: 28.09
P/S: 5.04 Price/Book: 4.6 EV/EBITDA: 11.98
Market Cap: $147.70B Avg. Daily Volume: 36,881,800 52 Week Range: $20.65 – $29.71

2. Apple Inc. (AAPL): $300.98

Shares of this personal computers company were sold by three insiders:

  • Senior Vice President Ronald Johnson sold 150,000 shares for $306.07 per share, generating a total amount of $45.91 million. This sale was as a result of exercising options immediately prior to the sale.
  • Senior Vice President Robert Mansfield sold 40,000 shares for $308 per share, generating a total amount of $12.32 million. This sale was as a result of exercising options immediately prior to the sale.
  • VP, Corporate Controller Betsy Rafael sold 7,135 shares for $313.18 per share, generating a total amount of $2.23 million
P/E: 19.86 Forward P/E: 13.7 Industry P/E: 19.86
P/S: 4.29 Price/Book: 5.85 EV/EBITDA: 12.94
Market Cap: $276.09B Avg. Daily Volume: 18,810,200 52 Week Range: $185.57 – $319

3. Chipotle Mexican Grill, Inc. (CMG): $210.21

Shares of this Mexican food restaurant were sold by six insiders:

  • Director Albert Baldocchi sold 40,000 shares for $205.9 per share, generating a total amount of $8.24 million
  • Chairman & Co-CEO Steve Ells sold 40,000 shares for $204.78 per share, generating a total amount of $8.19 million
  • Co-Chief Executive Officer Montgomery Moran sold 19,100 shares for $209.68 per share, generating a total amount of $4 million. This sale was as a result of exercising options immediately prior to the sale.
  • Chief Financial Officer Jack Hartung sold 15,000 shares for $207.09 per share, generating a total amount of $3.11 million. This sale was as a result of exercising options immediately prior to the sale.
  • Chief Development Officer Robert N Blessing Jr sold 7,542 shares for $206.53 per share, generating a total amount of $1.56 million. 10,000 shares were sold as a result of exercising options immediately prior to the sale.
  • Director Darlene Friedman sold 1,000 shares for $213.73 per share, generating a total amount of $213,730
P/E: 40.69 Forward P/E: 32.39 Industry P/E: 16.17
P/S: 3.74 Price/Book: 8.55 EV/EBITDA: 18.43
Market Cap: $6.50B Avg. Daily Volume: 699,262 52 Week Range: $81.06 – $215.38

4. MSC Industrial Direct Co. Inc. (MSM): $56.94

Shares of this direct marketer and distributor of metalworking and maintenance were sold by nine insiders:

  • President & CEO David Sandler sold 122,348 shares for $58.21 per share, generating a total amount of $7.12 million. 100,348 of these shares were sold as a result of exercising options immediately prior to the sale.
  • Executive VP & CFO Charles A Boehlke Jr sold 111,581 shares for $58.23 per share, generating a total amount of $6.5 million. This sale was as a result of exercising options immediately prior to the sale.
  • Director Mitchell Jacobson sold 74,438 shares for $58.19 per share, generating a total amount of $4.33 million. 40,295 of these shares were sold as a result of exercising options immediately prior to the sale.
  • Executive VP, Sales Thomas Cox sold 29,006 shares for $58.2 per share, generating a total amount of $1.69 million. 25,000 of these shares were sold as a result of exercising options immediately prior to the sale.
  • EVP, Global Supply Chain Ops Douglas Jones sold 23,500 shares for $58.31 per share, generating a total amount of $1.37 million. This sale was as a result of exercising options immediately prior to the sale.
  • Senior VP, Human Resources Eileen McGuire sold 12,000 shares for $57.87 per share, generating a total amount of $694,380. This sale was as a result of exercising options immediately prior to the sale.
  • VP, Finance and Accounting Shelley Boxer sold 8,000 shares for $58.26 per share, generating a total amount of $466,058. This sale was as a result of exercising options immediately prior to the sale.
  • VP & CIO Charles Bonomo sold 5,575 shares for $58.54 per share, generating a total amount of $326,363. This sale was as a result of exercising options immediately prior to the sale.
  • VP – Finance and Controller Christopher Davanzo sold 1,250 shares for $58.54 per share, generating a total amount of $73,173. This sale was as a result of exercising options immediately prior to the sale.
P/E: 24.05 Forward P/E: 15.64 Industry P/E: 24.05
P/S: 2.11 Price/Book: 3.96 EV/EBITDA: 13.04
Market Cap: $3.57B Avg. Daily Volume: 258,750 52 Week Range: $42.38 – $59.12

5. Juniper Networks, Inc. (JNPR): $32.39

Shares of this networking & communication devices company were sold by four insiders:

  • Chairman of the Board Scott Kriens sold 375,000 shares for $31.65 per share, generating a total amount of $11.87 million. This sale was as a result of exercising options immediately prior to the sale.
  • EVP CTO Pradeep Sindhu sold 162,500 shares for $32.02 per share, generating a total amount of $5.2 million
  • Director Robert Calderoni sold 20,000 shares for $32.14 per share, generating a total amount of $642,816. This sale was as a result of exercising options immediately prior to the sale.
  • Director Stratton Sclavos sold 20,000 shares for $31.37 per share, generating a total amount of $627,336. This sale was as a result of exercising options immediately prior to the sale.
P/E: 38.61 Forward P/E: 21.17 Industry P/E: 38.6
P/S: 4.31 Price/Book: 2.62 EV/EBITDA: 16.59
Market Cap: $16.88B Avg. Daily Volume: 6,531,730 52 Week Range: $22.25 – $32.84
Source: Notable Buys and Sells: American Express, Apple