Welcome to edition 420 of Insider Weekends. Insider buying decreased last week with insiders purchasing $220.22 million of stock compared to $226.74 million in the week prior. Selling declined sharply with insiders selling $823.77 million of stock last week compared to $1.43 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 to 3.74. In other words, insiders sold almost 4 times as much stock as they purchased. The Sell/Buy ratio this week compares favorably with the prior week, when the ratio stood at 6.3.
Insider Sell Buy Ratio July 6, 2018 (source: InsideArbitrage.com database)
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. Intrexon Corporation (XON): $14.56
Chief Executive Officer Randal J. Kirk acquired 7,479,431 shares of this biotech company, paying $13.37 per share for a total amount of $99.99 million. These shares were purchased indirectly by Kapital Joe and were acquired in a secondary offering by the company.
Mr. Kirk has a long track record of investing in biotechs and we have featured his insider purchases of biotech companies several times in the past. This 2011 Forbes article titled “The Next Big Move For The Smartest Biotech Investor” provides an interesting overview of Mr. Kirk.
You can view the list of recent insider transactions for Intrexon Corporation here.
|P/E: N/A||Forward P/E: -18.91||Industry P/E: 85.7|
|P/S: 8.52||Price/Book: 3.4||EV/EBITDA: -15.64|
|Market Cap: $1.88B||Avg. Daily Volume: 1,404,366||52 Week Range: $10.26 – $24.48|
2. DDR Corp. (DDR): $14.81
Director Alexander Otto acquired 633,912 shares of this shopping center REIT, paying $17.89 per share for a total amount of $11.34 million. Mr. Otto increased his stake by 1.98% to 32,624,569 shares with this purchase.
Mr. Otto’s purchase price is much higher than current prices of DDR because he acquired these shares right before the spinoff of Retail Value, Inc. (NYSE:RVI) from DDR. The price of DDR declined last Monday as one would expect after a spinoff and I started a position in “new” DDR.
You can view the list of recent insider transactions for DDR Corp. here.
|P/E: N/A||Forward P/E: 47.77||Industry P/E: 33.15|
|P/S: 3.06||Price/Book: 1.22||EV/EBITDA: 12.91|
|Market Cap: $2.74B||Avg. Daily Volume: 3,674,179||52 Week Range: $13.26 – $21.74|
3. U.S. Xpress Enterprises, Inc. (USX): $15.77
Executive Chairman Max L. Fuller acquired 560,940 shares of this trucking company, paying $14.60 per share for a total amount of $8.19 million. These shares were purchased indirectly by Fuller Family Enterprises, LLC.
You can view the list of recent insider transactions for U.S. Xpress Enterprises, Inc. here.
|P/E: 65.71||Forward P/E: N/A||Industry P/E: 24.64|
|P/S: 0.49||Price/Book: N/A||EV/EBITDA: 5.37|
|Market Cap: $802.84M||Avg. Daily Volume: 889,566||52 Week Range: $12.61 – $16.94|
4. Document Security Systems, Inc. (DSS): $1.29
Director Ambrose Heng Fai Chan acquired 214,286 shares of this business services company, paying $1.40 per share for a total amount of $300,000. These shares were purchased indirectly by Heng Fai Holdings Limited.
You can view the list of recent insider transactions for Document Security Systems, Inc. here.
|P/E: N/A||Forward P/E: -5.86||Industry P/E: 32.67|
|P/S: 1.17||Price/Book: 4.57||EV/EBITDA: 68.6|
|Market Cap: $21.41M||Avg. Daily Volume: 70,528||52 Week Range: $0.561 – $3.16|
5. Valeant Pharmaceuticals International, Inc. (VRX): $22.96
Director Richard DeSchutter acquired 10,000 shares of this Canadian pharmaceutical company, paying $21.80 per share for a total amount of $218,000. These shares were purchased indirectly by the reporting person’s spouse.
You can view the list of recent insider transactions for Valeant Pharmaceuticals International, Inc. here.
|P/E: 3.36||Forward P/E: 6.52||Industry P/E: 30.93|
|P/S: 0.92||Price/Book: 1.37||EV/EBITDA: 8.94|
|Market Cap: $8.02B||Avg. Daily Volume: 8,238,612||52 Week Range: $10.94 – $27.79|
You can view the full list of purchases from this Insider Buying page.
Notable Insider Sales:
1. Facebook, Inc. (FB): $203.23
Shares of Facebook were sold by 3 insiders:
- COB and CEO Mark Zuckerberg sold 946,215 shares for $195.04, generating $184.55 million from the sale. These shares were sold indirectly by various entities.
- Chief Operating Officer Sheryl Sandberg sold 55,000 shares for $195.53, generating $10.75 million from the sale.
- Chief Product Officer Christopher K. Cox sold 10,600 shares for $194.13, generating $2.06 from the sale.
You can view the list of recent insider transactions for Facebook, Inc. here.
|P/E: 33.64||Forward P/E: 21.83||Industry P/E: 34.28|
|P/S: 13.19||Price/Book: 7.59||EV/EBITDA: 20.23|
|Market Cap: $588.28B||Avg. Daily Volume: 24,016,264||52 Week Range: $147.8 – $203.64|
2. Ollie’s Bargain Outlet Holdings, Inc. (OLLI): $74.25
President, CEO Mark L. Butler sold 375,000 shares of this discount stores company for $70.46, generating $26.42 million from the sale. 250,000 of these shares were sold indirectly through a trust.
You can view the list of recent insider transactions for Ollie’s Bargain Outlet Holdings, Inc. here.
|P/E: 34.9083||Forward P/E: 36.9403||Industry P/E: 33.78|
|P/S: 4.11436||Price/Book: 5.60674||EV/EBITDA: 28.732|
|Market Cap: $4.63B||Avg. Daily Volume: 836,179||52 Week Range: $40.95 – $77.5|
3. NIKE, Inc. (NKE): $76.48
Shares of Nike were sold by 3 insiders:
- Chief Operating Officer Eric D. Sprunk sold 150,000 shares for $79.07, generating $11.86 million from the sale.
- EVP: CFO Andrew Campion sold 103,000 shares for $80.01, generating $8.24 million from the sale.
- EVP, CAO and General Counsel Hilary K. Krane sold 40,000 shares for $76.51, generating $3.06 million from the sale.
You can view the list of recent insider transactions for NIKE, Inc. here.
|P/E: 70.68||Forward P/E: 24.51||Industry P/E: 21.5|
|P/S: 3.49||Price/Book: 12.6581||EV/EBITDA: 22.927|
|Market Cap: $123.27B||Avg. Daily Volume: 6,735,290||52 Week Range: $50.35 – $81|
4. Palo Alto Networks, Inc. (PANW): $211.16
Shares of this network security company were sold by 3 insiders:
- Director Mark D. McLaughlin sold 40,000 shares for $204.84, generating $8.19 million from the sale. These shares were sold as a result of exercising options immediately prior to the sale.
- President Mark Anderson sold 30,000 shares for $208.43, generating $6.25 million from the sale. 20,000 of these shares were sold as a result of exercising options immediately prior to the sale.
- EVP, Chief Technology Officer Nir Zuk sold 30,000 shares for $206.49, generating $6.19 million from the sale.
You can view the list of recent insider transactions for Palo Alto Networks, Inc. here.
|P/E: N/A||Forward P/E: 43.72||Industry P/E: 34.28|
|P/S: 9.23||Price/Book: 27.17||EV/EBITDA: -891.42|
|Market Cap: $19.61B||Avg. Daily Volume: 1,341,634||52 Week Range: $126.56 – $217.4|
5. Alphabet Inc. (GOOG): $1140.17
Shares of Google were sold by 3 insiders:
- CEO, Google LLC Sundar Pichai sold 10,000 shares for $1113.42, generating $11.13 million from the sale.
- VP, Chief Accounting Officer Amie Thuener O’Toole sold 73 shares for $1135.82, generating $82,915 from the sale.
- Director Ann Mather sold 24 shares for $1100.00, generating $26,400 from the sale.
You can view the list of recent insider transactions for Alphabet Inc. here.
|P/E: 48.27||Forward P/E: 24.1||Industry P/E: 34.28|
|P/S: 6.79||Price/Book: 4.93||EV/EBITDA: 18.45|
|Market Cap: $796.04B||Avg. Daily Volume: 1,571,000||52 Week Range: $903.4 – $1186.89|
You can view the full list of sales from this Insider Sales page.
Disclaimer: I hold a long position in DDR (DDR).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 am/we are long DDR. 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.