December 31st, 2012
by Asif Suria
Insider buying decreased with insiders purchasing $25.87 million of their stock last week compared to $119.29 million in the week prior. Selling also decreased with insiders selling $872.05 million of stock last week compared to $2.82 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 33.71. In other words, insiders sold almost 34 times as much stock as they purchased. The Sell/Buy ratio this week compares unfavorably with the prior week, when the ratio stood at 23.67.
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. Weatherford International Ltd. (WFT): $10.58
Shares of this oil & gas drilling services company were acquired by 2 insiders:
- Sr. VP Compliance & Production Systems Dharmesh Mehta acquired 70,000 shares, paying $10.61 per share for a total amount of $742,500. Mr. Mehta increased his stake by 27.10% to 328,325 shares with this purchase.
- Vice President – Tax James C. Parent acquired 30,000 shares, paying $10.87 per share for a total amount of $326,041. Mr. Parent increased his stake by 97.75% to 60,691 shares with this purchase.
You can view the list of recent insider transactions for Weatherford International Ltd. here.
|P/E: N/A||Forward P/E: 9.98||Industry P/E: 12.5|
|P/S: 0.55||Price/Book: 0.93||EV/EBITDA: 6.54|
|Market Cap: $8.09B||Avg. Daily Volume: 10,631,500||52 Week Range: $8.84 – $18.33|
2. Opko Health, Inc. (OPK): $4.73
CEO & Chairman Phillip Frost M.D. acquired 220,000 shares of this medical devices and drug development company, paying $4.67 per share for a total amount of $1.03 million. These shares were purchased indirectly by Frost Gamma Investments Trust.
You can view the list of recent insider transactions for Opko Health, Inc. here.
|P/E: N/A||Forward P/E: N/A||Industry P/E: 20|
|P/S: 38.64||Price/Book: 9.6||EV/EBITDA: -55.69|
|Market Cap: $1.41B||Avg. Daily Volume: 1,299,760||52 Week Range: $4.00 – $5.53|
3. SolarCity Corporation (SCTY): $11.57
Director Elon Musk acquired 88,970 shares of this solar systems installer, paying $11.12 per share for a total amount of $989,636. These shares were purchased indirectly through a trust. It is interesting to see Musk of Paypal and Tesla Motors fame, pick up shares of SolarCity just two weeks after the IPO that was priced at $8 per share. The company lowered its IPO price to the $8 level after initially pricing it at $13 to $15.
You can view the list of recent insider transactions for SolarCity Corporation here.
|P/E: N/A||Forward P/E: N/A||Industry P/E: 17.41|
|P/S: 6.65||Price/Book: 4.99||EV/EBITDA: -26.95|
|Market Cap: $845.52M||Avg. Daily Volume: 1,251,440||52 Week Range: $9.2 – $13|
4. Oil States International Inc. (OIS): $69.12
Director Gary L. Rosenthal acquired 12,971 shares of this oil & gas services company, paying $70.05 per share for a total amount of $908,643. Mr. Rosenthal increased his stake by 123.03% to 23,514 shares with this purchase.
You can view the list of recent insider transactions for Oil States International Inc. here.
|P/E: 8.6||Forward P/E: 8.79||Industry P/E: 12.5|
|P/S: 0.9||Price/Book: 1.62||EV/EBITDA: 5.36|
|Market Cap: $3.79B||Avg. Daily Volume: 696,623||52 Week Range: $60.03 – $87.65|
5. Luby’s, Inc. (LUB): $6.44
Shares of this restaurant chain were acquired by 2 insiders:
- Director Harris J. Pappas acquired 50,000 shares, paying $6.57 per share for a total amount of $328,250. Mr. Pappas increased his stake by 1.41% to 3,601,170 shares with this purchase.
- President and CEO Christopher James Pappas acquired 50,000 shares, paying $6.57 per share for a total amount of $328,250. Mr. Pappas increased his stake by 1.47% to 3,454,803 shares with this purchase.
You can view the list of recent insider transactions for Luby’s, Inc. here.
|P/E: 26.95||Forward P/E: 22.21||Industry P/E: 19.25|
|P/S: 0.52||Price/Book: 1.06||EV/EBITDA: 7.15|
|Market Cap: $181.55M||Avg. Daily Volume: 27,739||52 Week Range: $4.6 – $7.48|
You can view the full list of purchases from this Insider Buying page.
Notable Insider Sales:
1. Intuit Inc. (INTU): $59.33
Shares of this accounting and tax software company were sold by 2 insiders:
- Chairman of Exec. Committee Scott D. Cook sold 210,136 shares for $60.18, generating $12.65 million from the sale.
- Director Diane B. Greene sold 75,000 shares for $60.55, generating $4.54 million from the sale. These shares were sold as a result of exercising options immediately prior to the sale.
You can view the list of recent insider transactions for Intuit Inc. here.
|P/E: 21.52||Forward P/E: 15.91||Industry P/E: 24.53|
|P/S: 4.23||Price/Book: 6.56||EV/EBITDA: 12.36|
|Market Cap: $17.56B||Avg. Daily Volume: 1,644,020||52 Week Range: $51.88 – $62.86|
2. FactSet Research Systems Inc. (FDS): $87.68
Director Charles J. Snyder sold 139,000 shares of this information and delivery services company for $89.69, generating $12.47 million from the sale.
You can view the list of recent insider transactions for FactSet Research Systems Inc. here.
|P/E: 20.68||Forward P/E: 17.26||Industry P/E: N/A|
|P/S: 4.72||Price/Book: 6.6||EV/EBITDA: 11.74|
|Market Cap: $3.88B||Avg. Daily Volume: 376,185||52 Week Range: $85.38 – $109.2|
3. Accenture plc (ACN): $65.66
Shares of this management and technology consulting company were sold by 4 insiders:
- Group Chief Executive Health & PS Stephen J. Rohleder sold 91,191 shares for $66.70, generating $6.08 million from the sale.
- Executive Chairman William D. Green sold 70,000 shares for $66.70, generating $4.67 million from the sale.
- Chief Financial Officer Pamela J. Craig sold 2,000 shares for $66.70, generating $133,409 from the sale. These shares were purchased indirectly through a trust.
- General Counsel, Secretary & CCO Julie Spellman Sweet sold 1,611 shares for $66.69, generating $107,436 from the sale.
You can view the list of recent insider transactions for Accenture plc here.
|P/E: 18.2||Forward P/E: 14.03||Industry P/E: 11.56|
|P/S: 1.52||Price/Book: 9.42||EV/EBITDA: 8.58|
|Market Cap: $42.31B||Avg. Daily Volume: 3,170,640||52 Week Range: $51.47 – $71.79|
4. Continental Resources, Inc. (CLR): $70.82
Shares of this independent oil & gas company were sold by 3 insiders:
- Vice Chairman of SGI Jeff B. Hume sold 64,998 shares for $73.21, generating $4.76 million from the sale. These shares were purchased indirectly by a limited liability company owned by Mr. Hume and his spouse.
- Sr. VP & CFO John D. Hart sold 2,500 shares for $72.78, generating $181,950 from the sale.
- SVP, Operations Richard E. Muncrief sold 2,000 shares for $73.44, generating $146,876 from the sale.
You can view the list of recent insider transactions for Continental Resources, Inc. here.
|P/E: 31.57||Forward P/E: 15.26||Industry P/E: 18.81|
|P/S: 5.9||Price/Book: 4.55||EV/EBITDA: 10.78|
|Market Cap: $13.01B||Avg. Daily Volume: 1,081,060||52 Week Range: $61.02 – $97.19|
5. Kodiak Oil & Gas Corp. (KOG): $8.55
Chairman, President and CEO Lynn A. Peterson sold 500,000 shares of this oil & gas exploration company for $9.23, generating $4.62 million from the sale. 100,000 of these shares were sold indirectly by Mr. Peterson’s spouse.
You can view the list of recent insider transactions for Kodiak Oil & Gas Corp. here.
|P/E: 34.34||Forward P/E: 12.04||Industry P/E: 12.5|
|P/S: 6.89||Price/Book: 2.3||EV/EBITDA: 13.38|
|Market Cap: $2.26B||Avg. Daily Volume: 6,739,760||52 Week Range: $6.92 – $10.9|
You can view the full list of sales from this Insider Sales page.