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Insider Weekends: Activist Investors Add To Their Avid Technology Stake

Jun. 01, 2020 8:40 AM ETJAZZ, NMFC, MCY, AHH, FTV, NVDA, AYX, WMS, UBER, AVID2 Comments


  • Insider buying almost doubled last week.
  • Notable Insider Buys: Avid Technology, Inc., Jazz Pharmaceuticals plc, New Mountain Finance Corporation, Mercury General Corporation, and Armada Hoffler Properties, Inc.
  • Notable Insider Sells: Fortive Corporation, NVIDIA Corporation, Alteryx, Inc., Advanced Drainage Systems, Inc., and Uber Technologies, Inc.

Insider buying almost doubled last week with insiders purchasing $209.6 million of stock compared to $107.94 million in the week prior. Selling also increased with insiders selling $1.47 billion of stock last week compared to $1.33 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 to 7.02. In other words, insiders sold more than 7 times as much stock as they purchased. The Sell/Buy ratio this week compares favorably with the prior week when the ratio stood at 12.31.

(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. Avid Technology, Inc. (AVID): $7.06

Director Christian Asmar acquired 1,049,073 shares of this technology hardware, software and peripherals company, paying $6.12 per share for a total amount of $6.42 million. These shares were purchased indirectly by Impactive Capital GP LLC.

Mr. Asmar is the cofounder of New York based activist hedge fund Impactive Capital, which has nearly $400 million in assets under management. Prior to starting Impactive Capital, he was at Blue Harbour Group, a $3 billion activist investment firm where he was a Managing Director and Investing Partner. He has served on Avid’s Board of Directors since October 2019. With this round of purchases, Avid Technology is most likely the top holding for Impactive Capital with nearly 15% of capital allocated to this position.

This article was written by

Asif Suria profile picture

Asif Suria is an entrepreneur and investor with a professional background in technology and a focus on event driven strategies including: merger arbitrage, spinoffs, (legal) insider trading, buybacks and SPACs. Asif has been actively investing for over 20 years and sharing his ideas for the past 10.

He is the leader of the investing group Inside Arbitrage where he shares investment ideas rarely found in mainstream financial press. Inside Arbitrage provides access to six different event-driven strategies to expand your investing toolbox, special situations focused tools, qualitative writeups of ideas through weekly articles, and a comprehensive monthly newsletter. Learn more.

Analyst’s 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.

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Comments (2)

Chris Valley profile picture
Alright, I will at least look at Mercury again. Do I really have to look though??
Asif Suria profile picture
Would love to hear your thoughts if you have been following them. I am intrigued but have not been following them.
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