Insider Trading 15 February 2013: Higher the Market, the More Insiders Sell

February 18th, 2013
in contributors

by Asif Suria

Insider buying dropped nearly in half with insiders purchasing $27.62 million of their stock last week compared to $53.87 million in the week prior. Selling also decreased with insiders selling $1.29 billion of stock last week compared to $1.65 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 46.7. In other words, insiders sold almost 47 times as much stock as they purchased. The Sell/Buy ratio this week compares unfavorably with the prior week, when the ratio stood at 30.7. This is the fifth week in a row the insider Sell/Buy ratio has gone up in tandem with the market.

Follow up:

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.

Insider Sell Buy Ratio February 15, 2013

Insider Sell Buy Ratio February 15, 2013

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. Murphy Oil Corporation (MUR): $61.35

Director Claiborne P. Deming acquired 80,000 shares of this oil & gas exploration & production company, paying $60.34 per share for a total amount of $4.83 million. Mr. Deming increased his stake by 11.71% to 763,330 shares with this purchase.

You can view the list of recent insider transactions for Murphy Oil Corporation here.

P/E: 12.31 Forward P/E: 9.4 Industry P/E: 12.22
P/S: 0.41 Price/Book: 1.3 EV/EBITDA: 3.77
Market Cap: $11.87B Avg. Daily Volume: 1,830,910 52 Week Range: $43.29 – $65.6

2. Akamai Technologies, Inc. (AKAM): $38.49

Shares of this content delivery and cloud infrastructure company were acquired by 2 insiders:

  • Chief Executive Officer Thomson F. Leighton acquired 50,000 shares, paying $35.31 per share for a total amount of $1.77 million. These shares were purchased indirectly through a trust.
  • Director George H. Conrades acquired 27,325 shares, paying $36.74 per share for a total amount of $1 million. These shares were purchased indirectly through a trust.

Akamai saw its stock drop sharply on February 6th from $41.58 to $35.26 on nearly 10 times average daily volume after reporting fourth quarter results despite a 17% increase in fourth quarter revenue to $378 million and better than expected earnings of 54 cents per share. Investors instead decided to focus on revenue not meeting expectations and first quarter revenue forecast of $352 million to $362 million falling short of the $369.8 million analysts were expecting.

The stock regained most of the losses from last week buoyed higher by these insider purchases.

You can view the list of recent insider transactions for Akamai Technologies, Inc. here.

P/E: 34.37 Forward P/E: 16.81 Industry P/E: 27.71
P/S: 4.91 Price/Book: 2.87 EV/EBITDA: 12.54
Market Cap: $6.85B Avg. Daily Volume: 3,392,310 52 Week Range: $25.9 – $42.53

3. Opko Health, Inc. (OPK): $6.73

CEO & Chairman Phillip Frost M.D. acquired 215,000 shares of this medical devices and drug development company, paying $6.53 per share for a total amount of $1.4 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: 21.76
P/S: 55.52 Price/Book: 13.79 EV/EBITDA: -80.55
Market Cap: $2.01B Avg. Daily Volume: 2,222,590 52 Week Range: $4 – $7.22

4. Hancock Holding Company (HBHC): $31.52

Director Terence E. Hall acquired 21,000 shares of this bank holding company, paying $31.43 per share for a total amount of $660,114. Mr. Hall increased his stake by 135.48% to 36,501 shares with this purchase.

Hancock is a regional bank holding company that trades at 1.09 times tangible book value, sports a 3.1% dividend yield and belongs to the small group of banks that did not cut its dividend through the last recession. Its two subsidiaries Hancock Bank and Whitney Bank together account for $19.5 billion in loan assets.

You can view the list of recent insider transactions for Hancock Holding Company here.

P/E: 18.01 Forward P/E: 12.03 Industry P/E: 15.13
P/S: 2.93 Price/Book: 1.09 EV/EBITDA: N/A
Market Cap: $2.67B Avg. Daily Volume: 426,015 52 Week Range: $27.96 – $36.73

5. Wet Seal Inc. (WTSLA): $3.03

Chief Executive Officer John D. Goodman acquired 218,256 shares of this apparel chain, paying $2.98 per share for a total amount of $649,995. Mr. Goodman increased his stake by 115.11% to 407,856 shares with this purchase.

You can view the list of recent insider transactions for Wet Seal Inc. here.

Voluntary Disclosure: I have a long position in Wet Seal.

P/E: N/A Forward P/E: 75.75 Industry P/E: 17.46
P/S: 0.46 Price/Book: 1.23 EV/EBITDA: -226.95
Market Cap: $271.52M Avg. Daily Volume: 547,439 52 Week Range: $2.42 – $3.72

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

Notable Insider Sales:

1. News Corp. (NWS): $29.34

Chairman and CEO Keith Rupert Murdoch sold 1,396,571 shares of this media company for $28.72, generating $40.11 million from the sale. These shares were sold indirectly through a trust.

You can view the list of recent insider transactions for News Corp. here.

P/E: 17.59 Forward P/E: N/A Industry P/E: N/A
P/S: 1.96 Price/Book: 2.4 EV/EBITDA: 11.07
Market Cap: $68.22B Avg. Daily Volume: 3,137,460 52 Week Range: $18.52 – $29.39

2. Geospace Technologies Corporation (GEOS): $103.35

Shares of this seismic data equipment manufacturer were sold by 2 insiders:

  • President & CEO Gary D. Owens sold 237,760 shares for $103.05, generating $24.5 million from the sale. 17,500 of these shares were sold as a result of exercising options immediately prior to the sale.
  • CFO & Secretary Thomas T. Mcentire sold 25,000 shares for $106.79, generating $2.67 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 Geospace Technologies Corporation here.

P/E: 27.45 Forward P/E: 15.97 Industry P/E: 23.09
P/S: 5.99 Price/Book: 5.66 EV/EBITDA: 16.2
Market Cap: $1.33B Avg. Daily Volume: 122,256 52 Week Range: $40.31 – $113.73

3. Kansas City Southern (KSU): $97.77

Shares of this freight rail company were sold by 2 insiders:

  • Director Henry R. Davis sold 67,300 shares for $94.44, generating $6.36 million from the sale.
  • Director Robert J. Druten sold 20,000 shares for $96.00, generating $1.92 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 Kansas City Southern here.

P/E: 28.54 Forward P/E: 19.55 Industry P/E: 16.23
P/S: 4.8 Price/Book: 3.48 EV/EBITDA: 14.1
Market Cap: $10.77B Avg. Daily Volume: 929,276 52 Week Range: $61.36 – $98.34

4. The Goldman Sachs Group, Inc. (GS): $154.99

Vice Chairman Michael S. Sherwood sold 50,000 shares of Goldman Sachs for $152.03, generating $7.6 million from the sale. 10,544 of these shares were sold indirectly by Mr. Sherwood’s spouse.

You can view the list of recent insider transactions for The Goldman Sachs Group, Inc. here.

P/E: 10.97 Forward P/E: 10.41 Industry P/E: 12.87
P/S: 2.22 Price/Book: 1.11 EV/EBITDA: N/A
Market Cap: $75.34B Avg. Daily Volume: 4,209,070 52 Week Range: $90.43 – $156.72

5. Viacom, Inc. (VIAB): $59.46

Chairman of the Board Sumner M. Redstone  sold 128,777 shares of this media and entertainment company for $58.87, generating $7.58 million from the sale.

You can view the list of recent insider transactions for Viacom, Inc. here.

P/E: 13.96 Forward P/E: 11.03 Industry P/E: N/A
P/S: 2.24 Price/Book: 4.15 EV/EBITDA: 9.56
Market Cap: $29.43B Avg. Daily Volume: 3,724,070 52 Week Range: $35.13 – $49.85

You can view the full list of sales from this Insider Sales page.









Make a Comment

Econintersect wants your comments, data and opinion on the articles posted.  As the internet is a "war zone" of trolls, hackers and spammers - Econintersect must balance its defences against ease of commenting.  We have joined with Livefyre to manage our comment streams.

To comment, just click the "Sign In" button at the top-left corner of the comment box below. You can create a commenting account using your favorite social network such as Twitter, Facebook, Google+, LinkedIn or Open ID - or open a Livefyre account using your email address.















 navigate econintersect.com

Blogs

Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day
Weather

Newspapers

Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government
     

RSS Feeds / Social Media

Combined Econintersect Feed
Google+
Facebook
Twitter
Digg

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution

Contact

About

  Top Economics Site

Investing.com Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2017 Econintersect LLC - all rights reserved