Insider Weekends May 13, 2016

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Includes: CMCSA, COGT, FLT, MDCO, NLY, PGLC, PSMT, TWX, UCBI, WNR
by: Asif Suria

Summary

Insider buying increased last week.

Notable insider buys this week: IDI, MDCO, PGLC, WNR, and NLY.

Notable insider sales this week: UCBI, FLT, TWX, PSMT, and CMCSA.

Welcome to edition 308 of Insider Weekends. Insider buying increased last week with insiders buying $79 million of stock compared to $43.91 million in the week prior. Selling decreased with insiders selling $1.84 billion of stock last week compared to $2.43 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 down to 23.26. In other words, insiders sold more than 23 times as much stock as they purchased. The Sell/Buy ratio this week compares favorably with the prior week, when the ratio stood at 55.46. 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 May 13, 2016

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. IDI, Inc. (IDI): $5.35

Shares of this data and analytical solutions provider were acquired by 2 insiders:

  • Director Phillip Frost M.D. acquired 2,190,000 shares, paying $4.80 per share for a total amount of $10.51 million. These shares were purchased indirectly by Frost Gamma Investments Trust.
  • President James Patrick Reilly acquired 900 shares, paying $4.79 per share for a total amount of $4,311. Mr. Reilly increased his stake by 2.87% to 32,238 shares with this purchase.

We were a little surprised to see this purchase by Dr. Frost as most of his large purchases in the past were related to the healthcare company Opko Health (NYSEMKT:OPK) where he serves as the Chairman and CEO. This is his largest purchases in IDI since we started tracking insider transactions back in 2010 and leaves him with a 34% stake in the company following the purchase.

Dr. Frost began his career in 1972, when he bought Key Pharmaceuticals along with Michael Jaharis and turned the company around. He was Chairman of the Board of Directors of Key Pharmaceuticals until 1986 when it was acquired by Schering-Plough for $587 million. After the acquisition of Key Pharmaceuticals, Dr. Frost founded the IVAX Corporation in 1986 along with Dr. Jane H. Hsiao, the current CTO of Opko Health.

IVAX specialized in generic drugs and played a significant international role in Latin America, Central and Eastern Europe. IVAX was acquired by Teva Pharmaceuticals (NASDAQ:TEVA) in 2006. Dr. Frost became Vice Chairman of Teva after the acquisition of IVAX in 2006. In 2010, he was named Chairman of the Board of Teva and was reelected to the position in May 2012.

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

P/E: N/A Forward P/E: N/A Industry P/E: 18.75
P/S: 5.1 Price/Book: 1.29 EV/EBITDA: -6.28
Market Cap: $246.06M Avg. Daily Volume: 92,140 52-Week Range: $3.78-$12.8
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2. The Medicines Company (NASDAQ:MDCO): $33.96

Director Fredric N. Eshelman acquired 300,000 shares of this pharmaceutical company, paying $33.68 per share for a total amount of $10.1 million.

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

P/E: N/A Forward P/E: N/A Industry P/E: 24.57
P/S: 9.41 Price/Book: 3.63 EV/EBITDA: -8.67
Market Cap: $2.36B Avg. Daily Volume: 815,760 52-Week Range: $25.38-$43.79
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3. Pershing Gold Corporation (NASDAQ:PGLC): $3.92

Director Barry C. Honig acquired 1,287,369 shares of this gold mining company, paying $3.65 per share for a total amount of $4.69 million. These shares were purchased indirectly by GRQ Consultants, Inc.

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

P/E: N/A Forward P/E: 7.54 Industry P/E: N/A
P/S: N/A Price/Book: 2.53 EV/EBITDA: -5.12
Market Cap: $102.32M Avg. Daily Volume: 154,919 52-Week Range: $0.33-$6.3
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4. Western Refining, Inc. (NYSE:WNR): $21.72

Shares of this oil and gas pipelines company were acquired by 2 insiders:

  • President & CEO Jeff A. Stevens acquired 150,000 shares, paying $22.02 per share for a total amount of $3.3 million. Mr. Stevens increased his stake by 4.54% to 3,452,609 shares with this purchase.
  • Director Robert J. Hassler acquired 20,000 shares, paying $22.10 per share for a total amount of $442,000.

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

P/E: 6.18 Forward P/E: 9.78 Industry P/E: 11.88
P/S: 0.22 Price/Book: 1.62 EV/EBITDA: 3.23
Market Cap: $1.98B Avg. Daily Volume: 2,794,870 52-Week Range: $20.64-$50.71
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5. Annaly Capital Management, Inc. (NYSE:NLY): $11.05

Chief Legal Officer Nicholas R. Singh acquired 135,600 shares of this mortgage REIT, paying $10.85 per share for a total amount of $1.47 million. Mr. Singh increased his stake by 45.02% to 436,800 shares with this purchase. 5,200 of these shares were purchased indirectly in a 401(k) Plan.

You can view the list of recent insider transactions for Annaly Capital Management, Inc. here.

P/E: 11 Forward P/E: 9.78 Industry P/E: 13.19
P/S: 34.99 Price/Book: 0.96 EV/EBITDA: N/A
Market Cap: $10.22B Avg. Daily Volume: 8,519,960 52-Week Range: $8.25-$11.13
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You can view the full list of purchases from this Insider Buying page.

Notable Insider Sales:

1. United Community Banks, Inc. (NASDAQ:UCBI): $19.49

Director Nicholas B. Paumgarten sold 7,300,047 shares of this regional bank for $19.66, generating $143.52 million from the sale. These shares were sold indirectly through Corsair Georgia, L.P.

You can view the list of recent insider transactions for United Community Banks, Inc. here.

P/E: 17.5 Forward P/E: 12.26 Industry P/E: 15.44
P/S: 4.04 Price/Book: 1.36 EV/EBITDA: N/A
Market Cap: $1.39B Avg. Daily Volume: 500,556 52-Week Range: $15.74-$22.23
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2. FleetCor Technologies, Inc. (NYSE:FLT): $145.38

Shares of this payment products and services company were sold by 7 insiders:

  • CEO & President Ronald Clarke sold 290,000 shares for $150.42, generating $43.62 million from the sale.
  • Director Mark A. Johnson sold 20,000 shares for $151.80, generating $3.04 million from the sale.
  • Exec VP, Corp Development John Coughlin sold 13,220 shares for $152.20, generating $2.01 million from the sale.
  • Pres, Corp Lodging Consultants Timothy Downs sold 13,180 shares for $152.35, generating $2 million from the sale.
  • President NA Card Products Todd House sold 3,000 shares for $151.05, generating $453,164 from the sale.
  • Director Richard Macchia sold 1,200 shares for $151.19, generating $181,431 from the sale.
  • Global Chief Information Officer John A. Reed sold 620 shares for $151.98, generating $94,229 from the sale. 285 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 FleetCor Technologies, Inc. here.

P/E: 36.16 Forward P/E: 19.15 Industry P/E: 21.44
P/S: 8.21 Price/Book: 4.68 EV/EBITDA: 18.7
Market Cap: $13.47B Avg. Daily Volume: 813,733 52-Week Range: $107.56-$164.61
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3. Time Warner Inc. (NYSE:TWX): $73.23

Shares of this media and entertainment company were sold by 2 insiders:

  • Chairman of the Board and CEO Jeffrey L. Bewkes sold 272,710 shares for $74.26, generating $20.25 million from the sale.
  • Director Stephen F. Bollenbach sold 8,038 shares for $74.23, generating $596,669 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 Time Warner Inc. here.

P/E: 14.69 Forward P/E: 12.1 Industry P/E: 25.7
P/S: 2.04 Price/Book: 2.43 EV/EBITDA: 9.91
Market Cap: $57.59B Avg. Daily Volume: 4,868,960 52-Week Range: $55.53-$91.34
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4. PriceSmart Inc. (NASDAQ:PSMT): $85.29

Director Robert E. Price sold 220,844 shares of this discount warehouse grocer for $84.00, generating $18.55 million from the sale. These shares were sold indirectly through various trusts and entities.

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

P/E: 27.73 Forward P/E: 24.44 Industry P/E: 26.65
P/S: 0.89 Price/Book: 4.38 EV/EBITDA: 13.49
Market Cap: $2.59B Avg. Daily Volume: 141,206 52-Week Range: $68.51-$103.59
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5. Comcast Corporation (NASDAQ:CMCSA): $61.84

Shares of this entertainment and telecommunications provider were sold by 2 insiders:

  • Chairman of Board, Pres. & CEO Brian L. Roberts sold 200,000 shares for $62.65, generating $12.53 million from the sale.
  • Sr. EVP Stephen B. Burke sold 75,000 shares for $62.05, generating $4.65 million 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 Comcast Corporation here.

P/E: 18.75 Forward P/E: 15.82 Industry P/E: 25.7
P/S: 2 Price/Book: 2.87 EV/EBITDA: 7.91
Market Cap: $150.10B Avg. Daily Volume: 9,585,170 52-Week Range: $50-$64.99
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You can view the full list of sales from this Insider Sales page.

Disclaimer: Clients of Signal Partners, LLC and I may have positions in any of these stocks at any time. 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.


Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

Editor's Note: This article covers one or more stocks trading at less than $1 per share and/or with less than a $100 million market cap. Please be aware of the risks associated with these stocks.