Insider Weekends - July 22, 2016

by: Asif Suria

Summary

Insider buying increased last week.

Insider buying increased last week: LNG, AKAM, RH, SIG and KFS.

Notable insider sales this week: NOW, AAPL, KSU, WDAY and URI.

Welcome to edition 318 of Insider Weekends. Insider buying increased last week, with insiders buying $29.17 million of stock compared to $6.38 million in the week prior. Selling also increased, with insiders selling $757.96 million of stock last week compared to $578.34 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 purchases that week. The adjusted ratio for last week decreased to 25.98. In other words, insiders sold almost 26 times as much stock as they purchased. The Sell/Buy ratio this week compares favorably with the prior week, when the ratio stood at 90.65. 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 July 22, 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. Cheniere Energy, Inc. (NYSEMKT:LNG): $41.08

President and CEO Jack A. Fusco acquired 37,604 shares of this liquefied natural gas company, paying $39.89 per share, for a total amount of $1.49 million. Mr. Fusco increased his stake by 14.00% to 306,180 shares with this purchase. 18,802 of these shares were purchased indirectly by Fusco Energy Investments, LLP.

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

P/E: -9.07 Forward P/E: 46.68 Industry P/E: 30.06
P/S: 34.09 Price/Book: N/A EV/EBITDA: -102.34
Market Cap: $9.68B Avg. Daily Volume: 2,512,630 52-week Range: $22.8-71.11
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2. Akamai Technologies, Inc. (NASDAQ:AKAM): $57.89

Chief Executive Officer F Thomson Leighton acquired 17,456 shares of this content delivery and cloud infrastructure company, paying $57.28 per share, for a total amount of $999,880. These shares were purchased indirectly through a trust.

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

P/E: 32.71 Forward P/E: 18.98 Industry P/E: 30.66
P/S: 4.49 Price/Book: 3.23 EV/EBITDA: 14.25
Market Cap: $10.17B Avg. Daily Volume: 1,669,580 52-week Range: $39.43-76.98
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3. Restoration Hardware Holdings, Inc. (NYSE:RH): $30.42

Chairman and CEO Gary G. Friedman acquired 32,918 shares of this home furnishing company, paying $27.59 per share, for a total amount of $908,208. Mr. Friedman increased his stake by 1.51% to 2,207,451 shares with this purchase.

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

P/E: 18.02 Forward P/E: N/A Industry P/E: 16.06
P/S: 0.58 Price/Book: 1.41 EV/EBITDA: 6.89
Market Cap: $1.24B Avg. Daily Volume: 2,942,020 52-week Range: $24.75-106.49
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4. Signet Jewelers Limited (NYSE:SIG): $89.53

Shares of this specialty jewelry retailer (parent of Kay Jewelers, Jared The Galleria Of Jewelry, H.Samuel, and Ernest Jones) were acquired by 2 insiders:

  • Director Helen McCluskey acquired 1,005 shares, paying $89.91 per share, for a total amount of $90,363. Mr. McCluskey increased his stake by 19.36% to 6,197 shares with this purchase.
  • Managing Director, UK, Sebastian Hobbs acquired 500 shares, paying $91.72 per share, for a total amount of $45,860. Mr. Hobbs increased his stake by 6.11% to 8,684 shares with this purchase.

You can view the list of recent insider transactions for Signet Jewelers Limited here.

P/E: 14.31 Forward P/E: 9.48 Industry P/E: 19.68
P/S: 1 Price/Book: 2.21 EV/EBITDA: 8.57
Market Cap: $6.98B Avg. Daily Volume: 2,030,340 52-week Range: $77-152.27
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5. Kingsway Financial Services Inc. (NYSE:KFS): $5.3

Shares of this insurance company were acquired by 4 insiders:

  • Executive Vice President John Taylor Fitzgerald acquired 18,625 shares, paying $5.31 per share, for a total amount of $98,884. Mr. Fitzgerald increased his stake by 6.00% to 328,800 shares with this purchase.
  • President and CEO Larry G. Swets acquired 390 shares, paying $5.35 per share, for a total amount of $2,086. Mr. Swets increased his stake by 0.02% to 2,069,324 shares with this purchase.
  • COO, CFO, and EVP William August Hickey Jr. acquired 280 shares, paying $5.35 per share, for a total amount of $1,498. Mr. Hickey increased his stake by 0.10% to 294,706 shares with this purchase.
  • Vice President Hassan Baqar acquired 132 shares, paying $5.35 per share, for a total amount of $706. Mr. Baqar increased his stake by 0.09% to 148,208 shares with this purchase.

You can view the list of recent insider transactions for Kingsway Financial Services Inc. here.

P/E: -36.12 Forward P/E: N/A Industry P/E: N/A
P/S: 0.68 Price/Book: 2.55 EV/EBITDA: -14
Market Cap: $105.23M Avg. Daily Volume: 16,171 52-week Range: $3.65-5.74
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You can view the full list of purchases from this Insider Buying page.

Notable Insider Sales:

1. ServiceNow, Inc. (NYSE:NOW): $72.67

Chief Product Officer Frederic B. Luddy sold 150,000 shares of this software-as-a-service provider for $71.20, generating $10.68 million from the sale. These shares were sold indirectly through a trust.

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

P/E: N/A Forward P/E: 71.25 Industry P/E: 23.06
P/S: 10.52 Price/Book: 38.26 EV/EBITDA: -111.59
Market Cap: $11.84B Avg. Daily Volume: 1,505,460 52-week Range: $46-91.28
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2. Apple Inc. (NASDAQ:AAPL): $98.66

Senior Vice President Angela J. Ahrendts sold 35,797 shares of Apple for $100.00, generating $3.58 million from the sale.

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

P/E: 10.98 Forward P/E: 11.07 Industry P/E: 19.92
P/S: 2.39 Price/Book: 4.18 EV/EBITDA: 7.19
Market Cap: $540.40B Avg. Daily Volume: 39,026,400 52-week Range: $89.47-123.91
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3. Kansas City Southern (NYSE:KSU): $97.84

Shares of this freight rail company were sold by 2 insiders:

  • Senior Vice President and Chief Legal Officer William J. Wochner sold 26,521 shares for $98.32, generating $2.61 million from the sale.
  • Senior Advisor to the CEO, David L. Starling, sold 5,100 shares for $98.88, generating $504,312 from the sale.

You can view the list of recent insider transactions for Kansas City Southern here.

P/E: 21.29 Forward P/E: 18.53 Industry P/E: 17.54
P/S: 4.47 Price/Book: 2.63 EV/EBITDA: 11.3
Market Cap: $10.57B Avg. Daily Volume: 1,365,220 52-week Range: $62.2-101.24
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4. Workday, Inc. (NYSE:WDAY): $79.97

Shares of this application software company were sold by 7 insiders:

  • Chief Executive Officer Aneel Bhusri sold 10,353 shares for $79.06, generating $818,539 from the sale.
  • Vice Chairman Michael A. Stankey sold 8,781 shares for $79.06, generating $694,247 from the sale.
  • Co-President Mark S. Peek sold 6,904 shares for $79.05, generating $545,735 from the sale.
  • Senior Vice President James Bozzini sold 4,603 shares for $79.04, generating $363,821 from the sale.
  • Chairman David A. Duffield sold 3,699 shares for $79.07, generating $292,462 from the sale.
  • SVP, General Counsel and Secretary James P. Shaughnessy sold 1,842 shares for $79.05, generating $145,608 from the sale.
  • Chief Financial Officer Robynne Sisco sold 897 shares for $79.01, generating $70,868 from the sale.

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

P/E: N/A Forward P/E: 266.57 Industry P/E: 42.08
P/S: 12.25 Price/Book: 13.65 EV/EBITDA: -72.98
Market Cap: $15.75B Avg. Daily Volume: 1,618,890 52-week Range: $47.32-85.67
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5. United Rentals, Inc. (NYSE:URI): $78.22

Shares of this equipment rental company were sold by 3 insiders:

  • President and CEO Michael Kneeland sold 20,000 shares for $76.35, generating $1.53 million from the sale.
  • Executive VP and COO Matthew John Flannery sold 15,046 shares for $78.12, generating $1.18 million from the sale.
  • Vice President, Controller Jessica Graziano sold 877 shares for $76.34, generating $66,953 from the sale.

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

P/E: 11.8 Forward P/E: 9.93 Industry P/E: 13.6
P/S: 1.2 Price/Book: 4.54 EV/EBITDA: 8.37
Market Cap: $6.92B Avg. Daily Volume: 1,949,630 52-week Range: $41.9-80.68
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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.