January 6th, 2013
by Asif Suria
Insider buying increased with insiders purchasing $45.83 million of their stock last week compared to $25.87 million in the week prior. Selling decreased with insiders selling $655.73 million of stock last week compared to $872.05 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 14.31. In other words, insiders sold more than 14 times as much stock as they purchased. The Sell/Buy ratio this week compares favorably with the prior week, when the ratio stood at 33.71.
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. Opko Health, Inc. (OPK): $5.16
CEO & Chairman Phillip Frost M.D. acquired 210,000 shares of this medical devices and drug development company, paying $4.83 per share for a total amount of $1.01 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: 20.93|
|P/S: 40.76||Price/Book: 10.12||EV/EBITDA: -60.83|
|Market Cap: $1.54B||Avg. Daily Volume: 1,306,370||52 Week Range: $4 – $5.53|
2. Markel Corp. (MKL): $447.5
Shares of this insurance company were acquired by 4 insiders:
- Director Debora J. Wilson acquired 1,000 shares, paying $428.99 per share for a total amount of $428,990. Ms. Wilson increased her stake by 74.57% to 2,341 shares with this purchase.
- Vice President and CFO Anne G. Waleski acquired 200 shares, paying $432.20 per share for a total amount of $86,441. Ms. Waleski increased her stake by 8.26% to 2,622 shares with this purchase.
- Director Douglas C. Eby acquired 155 shares, paying $427.98 per share for a total amount of $66,337. Mr. Eby increased his stake by 38.27% to 560 shares with this purchase.
- President & Chief Investment Officer Thomas Sinnickson Gayner acquired 100 shares, paying $430.34 per share for a total amount of $43,034. Mr. Gayner increased his stake by 0.32% to 31,589 shares with this purchase.
Markel is often referred to as a “mini-Berkshire” drawing parallels between this Virginia based insurance company and Warren Buffett’s Berkshire Hathaway.
You can view the list of recent insider transactions for Markel Corp. here.
|P/E: 18||Forward P/E: 22.44||Industry P/E: 10.96|
|P/S: 1.47||Price/Book: 1.11||EV/EBITDA: 8.68|
|Market Cap: $4.31B||Avg. Daily Volume: 31,072||52 Week Range: $398.65 – $502.2|
3. Tuesday Morning Corporation (TUES): $6.57
Director Steven R. Becker acquired 88,451 shares of this home products retailer, paying $5.99 per share for a total amount of $529,713. These shares were purchased indirectly by Becker Drapkin Partners.
As mentioned in prior posts, Becker Drapkin Partners is an activist fund that tends to focus on small cap companies. Some of their other purchases we have covered in the past include Hot Topic (HOTT) and Glu Mobile (GLUU).
You can view the list of recent insider transactions for Tuesday Morning Corporation here.
|P/E: 121.67||Forward P/E: 22.66||Industry P/E: 24.92|
|P/S: 0.34||Price/Book: 1.07||EV/EBITDA: 11.98|
|Market Cap: $277.91M||Avg. Daily Volume: 201,602||52 Week Range: $3.12 – $6.86|
4. Omeros Corporation (OMER): $5.85
Shares of this biotech company were acquired by 3 insiders:
- Director Ray Aspiri acquired 40,000 shares, paying $5.72 per share for a total amount of $228,800. These shares were purchased indirectly by Aspiri Enterprises LLC.
- Director Peter A. Demopulos acquired 9,345 shares, paying $5.42 per share for a total amount of $50,650. Mr. Demopulos increased his stake by 5.64% to 175,067 shares with this purchase.
- Director Arnold C. Hanish acquired 2,000 shares, paying $5.58 per share for a total amount of $11,160. Mr. Hanish increased his stake by 500.00% to 2,400 shares with this purchase.
You can view the list of recent insider transactions for Omeros Corporation here.
|P/E: N/A||Forward P/E: N/A||Industry P/E: 20.08|
|P/S: 25.69||Price/Book: N/A||EV/EBITDA: -3.89|
|Market Cap: $151.43M||Avg. Daily Volume: 204,352||52 Week Range: $4 – $13.45|
5. Weatherford International Ltd. (WFT): $11.59
Vice President – Tax James C. Parent acquired 20,000 shares of this oil & gas drilling services company, paying $10.88 per share for a total amount of $217,600. Mr. Parent increased his stake by 32.95% to 80,691 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: 10.93||Industry P/E: 12.92|
|P/S: 0.58||Price/Book: 0.97||EV/EBITDA: 6.85|
|Market Cap: $8.86B||Avg. Daily Volume: 10,697,700||52 Week Range: $8.84 – $18.33|
You can view the full list of purchases from this Insider Buying page.
Notable Insider Sales:
1. Continental Resources, Inc. (CLR): $77.44
Vice Chairman of SGI Jeff B. Hume sold 125,002 shares of this independent oil & gas company for $70.95, generating $8.87 million from the sale. These shares were sold indirectly by a limited liability company owned by Mr. Hume and his spouse.
You can view the list of recent insider transactions for Continental Resources, Inc. here.
|P/E: 34.53||Forward P/E: 16.69||Industry P/E: 19.37|
|P/S: 6.19||Price/Book: 4.78||EV/EBITDA: 11.61|
|Market Cap: $14.23B||Avg. Daily Volume: 1,093,200||52 Week Range: $61.02 – $97.19|
2. AECOM Technology Corporation (ACM): $24.28
Shares of this technical and management services company were sold by 3 insiders:
- Director Francis S. Bong sold 160,000 shares for $23.62, generating $3.78 million from the sale.
- President Michael S. Burke sold 30,000 shares for $23.92, generating $717,600 from the sale.
- Chairman & CEO John M. Dionisio sold 10,000 shares for $23.95, generating $239,500 from the sale.
You can view the list of recent insider transactions for AECOM Technology Corporation here.
|P/E: N/A||Forward P/E: 8.61||Industry P/E: 14.81|
|P/S: 0.32||Price/Book: 1.2||EV/EBITDA: 7.09|
|Market Cap: $2.62B||Avg. Daily Volume: 867,220||52 Week Range: $14.5 – $24.73|
3. Cheniere Energy, Inc. (LNG): $20.14
Shares of this natural gas storage and pipeline company were sold by 6 insiders:
- Chairman, CEO & President Charif Souki sold 130,000 shares for $18.51, generating $2.41 million from the sale.
- Director Keith F. Carney sold 65,000 shares for $18.34, generating $1.19 million from the sale.
- Director John M. Deutch sold 20,000 shares for $18.21, generating $364,220 from the sale.
- Director Vicky A. Bailey sold 16,400 shares for $18.27, generating $299,639 from the sale.
- VP & Chief Accounting Officer Jerry D. Smith sold 15,000 shares for $18.50, generating $277,503 from the sale.
- Sr. VP – Marketing Howard Davis Thames sold 10,000 shares for $19.48, generating $194,821 from the sale.
You can view the list of recent insider transactions for Cheniere Energy, Inc. here.
|P/E: N/A||Forward P/E: N/A||Industry P/E: 13.64|
|P/S: 15.23||Price/Book: 6.93||EV/EBITDA: 491.41|
|Market Cap: $4.20B||Avg. Daily Volume: 4,221,710||52 Week Range: $8.53 – $20.46|
4. Vocera Communications, Inc. (VCRA): $25.66
Shares of this communication equipment company were sold by 5 insiders:
- Director Hany Nada sold 161,992 shares for $25.00, generating $4.05 million from the sale. These shares were sold indirectly by by Granite Global Ventures L.P.
- Chief Executive Officer Robert Zollars sold 12,300 shares for $25.04, generating $308,031 from the sale. These shares were sold as a result of exercising options immediately prior to the sale.
- President & COO Brent D. Lang sold 2,500 shares for $25.77, generating $64,418 from the sale. These shares were sold indirectly through a trust.
- VP, Sales Robert N. Flury sold 600 shares for $25.76, generating $15,455 from the sale. These shares were sold as a result of exercising options immediately prior to the sale.
- General Counsel, Secretary Jay Spitzen sold 350 shares for $25.78, generating $9,021 from the sale.
You can view the list of recent insider transactions for Vocera Communications, Inc. here.
|P/E: 693.51||Forward P/E: 62.59||Industry P/E: 14.7|
|P/S: 6.35||Price/Book: 5.06||EV/EBITDA: 76.08|
|Market Cap: $615.30M||Avg. Daily Volume: 227,575||52 Week Range: $20.2 – $32.97|
5. Spectrum Pharmaceuticals, Inc. (SPPI): $12.0297
Shares of this biotech company were sold by 2 insiders:
- Chairman, CEO & President Rajesh C. Shrotriya sold 378,343 shares for $11.29, generating $4.27 million from the sale.
- Director Anthony E. Maida III sold 5,000 shares for $11.42, generating $57,109 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 Spectrum Pharmaceuticals, Inc. here.
|P/E: 8.12||Forward P/E: 8.18||Industry P/E: 20.08|
|P/S: 2.83||Price/Book: 2.54||EV/EBITDA: 7.42|
|Market Cap: $716.28M||Avg. Daily Volume: 920,685||52 Week Range: $9.31 – $17.48|
You can view the full list of sales from this Insider Sales page.