Insider Weekends: CFO Of Valvoline Makes Her First Purchase Since 2016

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Includes: ANET, BBY, CAG, CARG, FB, JPM, KMI, OPK, VVV
by: Asif Suria
Summary

Insider buying declined last week.

Notable Insider Buys: Kinder Morgan, Inc., JPMorgan Chase & Co., Conagra Brands, Inc., OPKO Health, Inc., Valvoline Inc.

Notable Insider Sales: Facebook, Inc., JPMorgan Chase & Co., Best Buy Co., Inc., CarGurus, Inc., Arista Networks, Inc.

Insider buying declined last week, with insiders purchasing $46.23 million of stock compared to $88.58 million in the week prior. Selling, on the other hand, increased, with insiders selling $573.13 million of stock last week compared to $482.22 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 went up to 12.39. In other words, insiders sold more than 12 times as much stock as they purchased. The Sell/Buy ratio this week compares unfavorably with the prior week, when the ratio stood at 5.44.

Insider Sector Heat Map April 19, 2019

(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. Kinder Morgan, Inc. (KMI): $19.39

Executive Chairman Richard D. Kinder acquired 502,639 shares of this oil & gas pipelines company, paying $19.75 per share for a total amount of $9.93 million. Mr. Kinder increased his stake by 0.21% to 239,397,332 shares with this purchase.

We have been writing about Mr. Kinder's purchases for several weeks, and his purchases since he started buying actively in late January have totaled 4.3 million shares for a sum of $82 million. Following these purchases, he owns 251.27 million shares both directly and indirectly, representing nearly 11% of the company.

P/E: 28.02 Forward P/E: 17.79 Industry P/E: 45.03
P/S: 3.1 Price/Book: 1.3 EV/EBITDA: 12.72
Market Cap: $43.89B Avg. Daily Volume: 14,815,280 52-week Range: $14.62-20.44

2. JPMorgan Chase & Co. (JPM): $113.46

Director Mellody L. Hobson acquired 19,700 shares of JPMorgan, paying $111.30 per share for a total amount of $2.19 million. 18,000 of these shares were purchased indirectly through a trust.

P/E: 12.24 Forward P/E: 10.71 Industry P/E: 18.98
P/S: 3.51 Price/Book: 1.61 EV/EBITDA: N/A
Market Cap: $368.45B Avg. Daily Volume: 13,254,404 52-week Range: $91.11-119.24

3. ConAgra Brands, Inc. (CAG): $30.52

Shares of this packaged foods company were acquired by 2 insiders:

  • Director Joie A. Gregor acquired 10,000 shares, paying $29.99 per share for a total amount of $299,865. Mr. Gregor increased his stake by 18.30% to 64,650 shares with this purchase.
  • Director Anil Arora acquired 1,600 shares, paying $30.06 per share for a total amount of $48,096. Mr. Arora increased his stake by 125.20% to 2,878 shares with this purchase.
P/E: 20.76 Forward P/E: 14 Industry P/E: 19.93
P/S: 1.67 Price/Book: 2.01 EV/EBITDA: 14.19
Market Cap: $14.83B Avg. Daily Volume: 8,073,870 52-week Range: $20.22-39.43

4. OPKO Health, Inc. (OPK): $2.4

CEO & Chairman Phillip Frost M.D. acquired 90,000 shares of this devices and drug development company, paying $2.45 per share for a total amount of $220,594. These shares were purchased indirectly by Frost Nevada Investments Trust.

P/E: N/A Forward P/E: -20 Industry P/E: 29.3
P/S: 1.49 Price/Book: 0.79 EV/EBITDA: -24.9
Market Cap: $1.48B Avg. Daily Volume: 5,226,745 52-week Range: $2.34-6.4

5. Valvoline Inc. (VVV): $18.84

Chief Financial Officer Mary E. Meixelsperger acquired 7,500 shares of this engine and automotive maintenance products manufacturer, paying $18.71 per share for a total amount of $140,325. Ms. Meixelsperger increased her stake by 23.96% to 38,797 shares with this purchase.

Ms. Meixelsperger joined Valvoline as their CFO in June 2016 and made a small insider purchase in September of that year. This is her second insider purchase of the company, and this one was done under a 10b5-1 plan that was established on February 28, 2019. Considering she set up a 10b5-1 plan, it is likely that we will see additional insider purchases by her. The CEO of Valvoline also made a 25,000 share purchase in January of this year at an average price of $20.78 right before the company announced weak fiscal Q1 results and the stock dropped more than 20% to $18.10 in a single day.

P/E: 15.98 Forward P/E: 12.82 Industry P/E: 33.12
P/S: 1.54 Price/Book: N/A EV/EBITDA: 11.14
Market Cap: $3.55B Avg. Daily Volume: 1,442,927 52-week Range: $17.49-23.16

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

Notable Insider Sales

1. Facebook, Inc. (FB): $178.28

Shares of Facebook were sold by 3 insiders:

  • COB and CEO Mark Zuckerberg sold 726,100 shares for $178.61, generating $129.69 million from the sale. These shares were sold indirectly by various trusts and entities.
  • Chief Operating Officer Sheryl Sandberg sold 55,000 shares for $179.44, generating $9.87 million from the sale. These shares were sold indirectly through a trust.
  • VP and General Counsel Colin Stretch sold 750 shares for $179.60, generating $134,700 from the sale.
P/E: 23.55 Forward P/E: 20.12 Industry P/E: 41.83
P/S: 9.12 Price/Book: 6.05 EV/EBITDA: 16.02
Market Cap: $509.1B Avg. Daily Volume: 18,115,669 52-week Range: $123.02-218.62

2. JPMorgan Chase & Co. (JPM): $113.46

Shares of JPMorgan were sold by 7 insiders:

  • Chief Financial Officer Marianne Lake sold 115,415 shares for $109.75, generating $12.67 million from the sale.
  • CEO Asset & Wealth Management Mary E. Erdoes sold 72,340 shares for $109.92, generating $7.95 million from the sale.
  • Co-President & COO, CEO CCB Gordon Smith sold 41,395 shares for $109.99, generating $4.55 million from the sale.
  • Chief Risk Officer Ashley Bacon sold 20,145 shares for $109.75, generating $2.21 million from the sale.
  • CEO Commercial Banking Douglas B. Petno sold 18,303 shares for $109.74, generating $2 million from the sale. These shares were sold as a result of exercising options immediately prior to the sale.
  • General Counsel Stacey Friedman sold 3,710 shares for $109.75, generating $407,183 from the sale.
  • Corporate Controller Nicole Giles sold 3,230 shares for $110.43, generating $356,685 from the sale.
P/E: 12.24 Forward P/E: 10.71 Industry P/E: 18.98
P/S: 3.51 Price/Book: 1.61 EV/EBITDA: N/A
Market Cap: $368.45B Avg. Daily Volume: 13,254,404 52-week Range: $91.11-119.24

3. Best Buy Co., Inc. (BBY): $73.64

Shares of Best Buy were sold by 2 insiders:

  • Chairman & CEO Hubert Joly sold 171,711 shares for $73.68, generating $12.65 million from the sale.
  • Chief Merchandising & Marketing Officer Rajendra M. Mohan sold 30,000 shares for $73.92, generating $2.22 million from the sale.
P/E: 14.16 Forward P/E: 12.34 Industry P/E: 36.82
P/S: 0.46 Price/Book: 5.92 EV/EBITDA: 6.92
Market Cap: $19.72B Avg. Daily Volume: 3,220,303 52-week Range: $47.72-84.37

4. CarGurus, Inc. (CARG): $36.3

Shares of this online auto shopping provider were sold by 4 insiders:

  • Director Anastasios Parafestas sold 141,680 shares for $39.20, generating $5.55 million from the sale. These shares were sold indirectly by various trusts and entities.
  • COO and President Samuel Zales sold 18,000 shares for $39.96, generating $719,280 from the sale. These shares were sold as a result of exercising options immediately prior to the sale.
  • CFO and Treasurer Jason Trevisan sold 7,000 shares for $40.80, generating $285,601 from the sale.
  • Chief Marketing Officer Sarah Amory Welch sold 2,500 shares for $39.99, generating $99,975 from the sale.
P/E: 63.68 Forward P/E: 64.82 Industry P/E: 41.63
P/S: 8.87 Price/Book: 20.65 EV/EBITDA: 136.92
Market Cap: $4.03B Avg. Daily Volume: 798,369 52-week Range: $29.185-57.25

5. Arista Networks, Inc. (ANET): $323.38

President and CEO Jayshree Ullal sold 20,000 shares of this networking solutions provider for $329.03, generating $6.58 million from the sale. These shares were sold indirectly by various trusts.

P/E: 79.73 Forward P/E: 29.94 Industry P/E: 19.26
P/S: 11.5 Price/Book: 11.42 EV/EBITDA: 31.98
Market Cap: $24.74B Avg. Daily Volume: 849,369 52-week Range: $187.08-331.27

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.