Seeking Alpha

Insider Weekends: Cluster Of Purchases By Insiders Of U.S. Silica Holdings

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Includes: AAPL, ALCO, CARG, HY, LMRK, NVDA, ODT, PANW, SLCA, SPKE
by: Asif Suria
Asif Suria
Long/short equity, event-driven, insider ownership, investment advisor
Summary

Insider buying increased significantly last week.

Notable Insider Buys: SPKE, ODT, HY, SLCA, LMRK.

Notable Insider Sales: AAPL, ALCO, CARG, NVDA, PANW.

Insider buying increased significantly last week with insiders purchasing $124.14 million of stock compared to $47.04 million in the week prior. Selling also increased with insiders selling $1.22 billion of stock last week compared to $989.57 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 9.86. In other words, insiders sold almost 10 times as much stock as they purchased. The Sell/Buy ratio this week compares favorably with the prior week when the ratio stood at 21.04.

Insider Sector Heat Map October 5, 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. Spark Energy, Inc. (NASDAQ:SPKE): $8.56

Director Keith W. Maxwell acquired 123,904 shares of this electricity and natural gas supplier, paying $8.20 per share for a total amount of $1.02 million. Mr. Maxwell increased his stake by 11.68% to 1,184,338 shares with this purchase.

Spark Energy showed up on my radar in late 2014 and early 2015 following a string of insider purchases during the depths of the energy recession. The stock had declined sharply from its IPO price of $18 ($9 split adjusted) and insiders started loading up. The stock more than doubled over the next two years while sporting a near double-digit dividend yield. The stock lost more than 40% of its value over the last year and Mr. Maxwell started buying again on September 11, 2018.

Mr. Maxwell is the Chairman of Spark Energy and several other related entities, which creates the risk of related-party transactions. Energy service companies (ESCOs) like Spark have also come under criticism for their aggressive sales practices and potentially higher charges compared to standard utilities.

P/E: 23.78 Forward P/E: 28.53 Industry P/E: 11.76
P/S: 0.31 Price/Book: 4.69 EV/EBITDA: 4.44
Market Cap: $298.56M Avg. Daily Volume: 140,959 52-Week Range: $7.925 - $15.3

2. Odonate Therapeutics, Inc. (NASDAQ:ODT): $17.12

Chief Executive Officer Kevin C. Tang acquired 40,000 shares of this biotech company, paying $19.16 per share for a total amount of $766,308. These shares were purchased indirectly by Tang Capital Partners, LP.

P/E: N/A Forward P/E: -5.37 Industry P/E: 30.89
P/S: N/A Price/Book: 2.67 EV/EBITDA: -5.26
Market Cap: $460.39M Avg. Daily Volume: 48,293 52-Week Range: $15.15 - $32

3. Hyster-Yale Materials Handling, Inc. (NYSE:HY): $60.6

Chairman Alfred M. Rankin acquired 11,707 shares of this lift truck manufacturing company, paying $62.17 per share for a total amount of $727,856. These shares were purchased indirectly through various trusts.

P/E: 28.97 Forward P/E: 10.34 Industry P/E: 33.1
P/S: 0.33 Price/Book: 1.8 EV/EBITDA: 10.18
Market Cap: $1B Avg. Daily Volume: 37,853 52-Week Range: $56.4 - $93.9

4. U.S. Silica Holdings, Inc. (NYSE:SLCA): $19.42

Shares of this commercial silica producer were acquired by 5 insiders:

  • Director William Jennings Kacal acquired 10,000 shares, paying $18.88 per share for a total amount of $188,800. Mr. Kacal increased his stake by 15.67% to 73,815 shares with this purchase.
  • Director Michael J. Stice acquired 5,414 shares, paying $18.49 per share for a total amount of $100,105. Mr. Stice increased his stake by 19.95% to 32,556 shares with this purchase.
  • President and CEO Bryan Adair Shinn acquired 2,200 shares, paying $18.45 per share for a total amount of $40,590. Mr. Shinn increased his stake by 1.77% to 126,243 shares with this purchase.
  • EVP & Chief Commercial Officer Bradford B. Casper acquired 1,500 shares, paying $18.96 per share for a total amount of $28,440. Mr. Casper increased his stake by 8.80% to 18,552 shares with this purchase.
  • EVP & Chief Financial Officer Donald A. Merril acquired 500 shares, paying $18.86 per share for a total amount of $9,430. Mr. Merril increased his stake by 1.86% to 27,377 shares with this purchase.
P/E: 9.65 Forward P/E: 8.75 Industry P/E: 59.71
P/S: 1 Price/Book: 1.11 EV/EBITDA: 6.83
Market Cap: $1.5B Avg. Daily Volume: 2,406,476 52-Week Range: $17.92 - $38.7

5. Landmark Infrastructure Partners LP (NASDAQ:LMRK): $14.1

Shares of this property management company were acquired by 2 insiders:

  • Director Matthew P. Carbone acquired 14,000 shares, paying $14.10 per share for a total amount of $197,400.
  • Chief Executive Officer Arthur P. Brazy acquired 8,100 shares, paying $13.79 per share for a total amount of $111,699. Mr. Brazy increased his stake by 6.19% to 138,952 shares with this purchase.
P/E: 20.41 Forward P/E: 21.04 Industry P/E: N/A
P/S: 5.86 Price/Book: 1.07 EV/EBITDA: 15.92
Market Cap: $354.34M Avg. Daily Volume: 62,051 52-Week Range: $12.684 - $18.75

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

Notable Insider Sales:

1. Apple Inc. (NASDAQ:AAPL): $224.29

Shares of Apple were sold by 3 insiders:

  • Senior Vice President, CFO Luca Maestri sold 100,245 shares for $228.56, generating $22.91 million from the sale.
  • Senior Vice President Angela J. Ahrendts sold 64,194 shares for $230.89, generating $14.82 million from the sale.
  • COO Jeffrey E. Williams sold 61,998 shares for $232.33, generating $14,403,787 from the sale.
P/E: 20.32 Forward P/E: 16.36 Industry P/E: 6.73
P/S: 4.24 Price/Book: 9.45 EV/EBITDA: 14.44
Market Cap: $1.08T Avg. Daily Volume: 28,903,270 52-Week Range: $150.24 - $233.47

2. Alico, Inc. (NASDAQ:ALCO): $33.74

President and CEO Remy W. Trafelet sold 524,795 shares of this farm products company for $34.00, generating $17.84 million from the sale. These shares were sold indirectly by 734 Investor, LLC.

P/E: N/A Forward P/E: N/A Industry P/E: 8.89
P/S: 3.28 Price/Book: 1.62 EV/EBITDA: 19.87
Market Cap: $276.67M Avg. Daily Volume: 9,928 52-Week Range: $25.55 - $34.65

3. CarGurus, Inc. (NASDAQ:CARG): $49.42

Shares of this online auto shopping company were sold by 3 insiders:

  • Director Anastasios Parafestas sold 360,000 shares for $53.36, generating $19.21 million from the sale. These shares were sold indirectly by various trusts entities.
  • CEO, President, and Chairman Langley Steinert sold 234,812 shares for $52.30, generating $12.28 million from the sale. 11,740 of these shares were sold indirectly through a trust.
  • Chief Technology Officer Oliver Ian Chrzan sold 6,000 shares for $55.41, generating $332,460 from the sale. 737 of these shares were sold as a result of exercising options immediately prior to the sale.
P/E: 120.24 Forward P/E: 159.42 Industry P/E: 65.13
P/S: 14.14 Price/Book: 34.56 EV/EBITDA: 458.78
Market Cap: $5.41B Avg. Daily Volume: 971,417 52-Week Range: $25.85 - $57.25

4. NVIDIA Corporation (NASDAQ:NVDA): $269.86

EVP, Worldwide Field Ops Ajay K. Puri sold 90,831 shares of this semiconductors company for $289.35, generating $26.28 million from the sale.

P/E: 39.33 Forward P/E: 33.61 Industry P/E: 21.04
P/S: 13.81 Price/Book: 18.66 EV/EBITDA: 33.7
Market Cap: $164.07B Avg. Daily Volume: 9,585,671 52-Week Range: $180.58 - $292.76

5. Palo Alto Networks, Inc. (NYSE:PANW): $215.71

Shares of this software application company were sold by 2 insiders:

  • Director Mark D. McLaughlin sold 40,000 shares for $226.50, generating $9.06 million from the sale.
  • EVP, Chief Technology Officer Nir Zuk sold 30,000 shares for $225.36, generating $6.76 million from the sale. These shares were sold as a result of exercising options immediately prior to the sale.
P/E: N/A Forward P/E: 35.36 Industry P/E: 34.48
P/S: 8.9 Price/Book: 20.89 EV/EBITDA: 3036.12
Market Cap: $20.24B Avg. Daily Volume: 1,202,115 52-Week Range: $135.85 - $239.5

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

Disclaimer: 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.