November 11th, 2012
by Asif Suria
Insider buying decreased with insiders purchasing $90.63 million of their stock last week compared to $121.62 million in the week prior. Selling also decreased with insiders selling $1.29 billion of stock last week compared to $1.58 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 went up to 14.23. In other words, insiders sold more than 14 times as much stock as they purchased. The Sell/Buy ratio this week compares unfavorably with the prior week, when the ratio stood at 13.04.
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.
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. AGCO Corporation (AGCO): $44.32
Director Mallika Srinivasan acquired 426,521 shares of this farm & construction machinery company, paying $45.02 per share for a total amount of $19.2 million. These shares were purchased indirectly by Tractors and Farm Equipment Limited.
You can view the list of recent insider transactions for AGCO Corporation here.
|P/E: 6.2||Forward P/E: 7.97||Industry P/E: 10|
|P/S: 0.44||Price/Book: 1.28||EV/EBITDA: 5.54|
|Market Cap: $4.30B||Avg. Daily Volume: 1,112,390||52 Week Range: $38.09 – $54|
2. Travelzoo Inc. (TZOO): $17.65
Chairman of the Board Holger Bartel acquired 200,000 shares of this internet travel company, paying $18.39 per share for a total amount of $3.69 million.
This is an interesting purchase in light of Priceline.com’s (PCLN) acquisition of travel site Kayak (KYAK) for $40 per share in cash less than four months after Kayak went public at $26 per share. Travelzoo is trading close to its 52 week low and for 6 times EBITDA when compared to the 28 times EBITDA Priceline is paying for Kayak. However Kayak was posting high double digit revenue growth when compared to a 8.3% drop in revenue at Travelzoo last quarter.
You can view the list of recent insider transactions for Travelzoo Inc. here.
|P/E: 13.65||Forward P/E: 14.35||Industry P/E: 24.44|
|P/S: 1.84||Price/Book: 5.81||EV/EBITDA: 6.28|
|Market Cap: $278.87M||Avg. Daily Volume: 148,913||52 Week Range: $17.3 – $31.66|
3. Tuesday Morning Corporation (TUES): $5.6
Director Steven R. Becker acquired 456,735 shares of this home products retailer, paying $5.92 per share for a total amount of $2.7 million. These shares were purchased indirectly by Becker Drapkin Partners.
You can view the list of recent insider transactions for Tuesday Morning Corporation here.
|P/E: 103.7||Forward P/E: 24.35||Industry P/E: 22.49|
|P/S: 0.3||Price/Book: 0.96||EV/EBITDA: 10.54|
|Market Cap: $236.88M||Avg. Daily Volume: 228,579||52 Week Range: $3.05 – $6.86|
4. Astrotech Corp. (ASTC): $0.8899
Chief Executive Officer Thomas Boone Pickens III acquired 1,783,746 shares of this commercial aerospace company, paying $0.90 per share for a total amount of $1.61 million. Mr. Pickens increased his stake by 91.47% to 3,733,746 shares with this purchase.
You can view the list of recent insider transactions for Astrotech Corp. here.
|P/E: N/A||Forward P/E: N/A||Industry P/E: 13.59|
|P/S: 0.66||Price/Book: 0.51||EV/EBITDA: -286.4|
|Market Cap: $17.03M||Avg. Daily Volume: 129,044||52 Week Range: $0.52 – $1.34|
5. Questcor Pharmaceuticals, Inc. (QCOR): $25.05
Shares of this biotech company were acquired by 2 insiders:
- EVP and CTO David Jeffrey Medeiros acquired 55,000 shares, paying $23.92 per share for a total amount of $1.32 million. Mr. Medeiros increased his stake by 685.10% to 63,028 shares with this purchase.
- Executive VP & CBO Stephen LaHue Cartt acquired 10,000 shares, paying $24.17 per share for a total amount of $241,696. Mr. Cartt increased his stake by 12.79% to 88,198 shares with this purchase.
You can view the list of recent insider transactions for Questcor Pharmaceuticals, Inc. here.
|P/E: 9.68||Forward P/E: 6.17||Industry P/E: 18.88|
|P/S: 3.58||Price/Book: 12.4||EV/EBITDA: 5.7|
|Market Cap: $1.47B||Avg. Daily Volume: 5,497,520||52 Week Range: $17.25 – $58.91|
You can view the full list of purchases from this Insider Buying page.
Notable Insider Sales:
1. Kohl’s Corp. (KSS): $51.66
Shares of this department stores chain were sold by 3 insiders:
- Director William S. Kellogg sold 1,500,000 shares for $54.43, generating $81.65 million from the sale. These shares were sold indirectly through a trust.
- Director John F. Herma sold 739,995 shares for $54.71, generating $40.49 million from the sale. These shares were sold indirectly through a trust.
- Director Peter M. Sommerhauser sold 25,000 shares for $55.01, generating $1.38 million from the sale.
You can view the list of recent insider transactions for Kohl’s Corp. here.
|P/E: 12.18||Forward P/E: 10.13||Industry P/E: 17.87|
|P/S: 0.64||Price/Book: 1.96||EV/EBITDA: 5.6|
|Market Cap: $12.11B||Avg. Daily Volume: 3,071,510||52 Week Range: $42.72 – $56.62|
2. MasTec, Inc. (MTZ): $22.74
Shares of this infrastructure construction company were sold by 2 insiders:
- Director Jorge Mas sold 2,200,000 shares for $22.80, generating $50.16 million from the sale. These shares were sold indirectly by Jorge Mas Holdings I Limited Partnership.
- CEO Jose Ramon Mas sold 1,100,000 shares for $22.80, generating $25.08 million from the sale. 449,549 of these shares were sold indirectly by Jose Ramon Mas Holdings I Limited Partnership.
You can view the list of recent insider transactions for MasTec, Inc. here.
|P/E: 23.61||Forward P/E: 12.16||Industry P/E: 14.13|
|P/S: 0.46||Price/Book: 2.1||EV/EBITDA: 7.41|
|Market Cap: $1.73B||Avg. Daily Volume: 877,205||52 Week Range: $12.86 – $24.4|
3. The Charles Schwab Corporation (SCHW): $13.06
Chairman Charles R. Schwab sold 2,250,000 shares of this investment brokerage for $13.55, generating $30.48 million from the sale. These shares were sold indirectly through a trust.
You can view the list of recent insider transactions for The Charles Schwab Corporation here.
|P/E: 19.61||Forward P/E: 17.65||Industry P/E: 14.73|
|P/S: 3.46||Price/Book: 2.18||EV/EBITDA: N/A|
|Market Cap: $16.36B||Avg. Daily Volume: 10,181,000||52 Week Range: $10.67 – $15.53|
4. InvenSense, Inc. (INVN): $11.24
Director Steven Saeed Nasiri sold 2,080,090 shares of this motion tracking devices company for $11.44, generating $23.8 million from the sale. These shares were sold indirectly through a trust.
You can view the list of recent insider transactions for InvenSense, Inc. here.
|P/E: 27.28||Forward P/E: 15.61||Industry P/E: 19.14|
|P/S: 5.73||Price/Book: 4.65||EV/EBITDA: 17.14|
|Market Cap: $932.40M||Avg. Daily Volume: 1,210,700||52 Week Range: $8.25 – $22.35|
5. Flowserve Corp. (FLS): $135.27
Shares of this industrial flow management equipment company were sold by 5 insiders:
- President & CEO Mark A. Blinn sold 25,000 shares for $137.07, generating $3.43 million from the sale.
- SVP and Chief Admin Officer Mark D. Dailey sold 15,000 shares for $137.07, generating $2.06 million from the sale.
- Chief Operating Officer Thomas L. Pajonas sold 11,600 shares for $137.07, generating $1.59 million from the sale.
- SVP and General Counsel Ronald F. Shuff sold 10,788 shares for $137.07, generating $1.48 million from the sale.
- Director William C. Rusnack sold 828 shares for $137.07, generating $113,492 from the sale.
You can view the list of recent insider transactions for Flowserve Corp. here.
|P/E: 16.94||Forward P/E: 13.01||Industry P/E: 14.23|
|P/S: 1.45||Price/Book: 3.37||EV/EBITDA: 10.06|
|Market Cap: $6.76B||Avg. Daily Volume: 476,673||52 Week Range: $89.4 – $147.1|
You can view the full list of sales from this Insider Sales page.
Other posts by Asif Suria
About the Author
Asif Suria is the founder and editor of Insider Trade Reports, a service that provides daily reports on insider activity and rates the top insider purchases and sales using a proprietary model. He also maintains a Merger Arbitrage tool that displays real-time spreads and covers mergers and acquisitions on a weekly basis.