March 17th, 2013
by Asif Suria
Insider buying decreased with insiders purchasing $28.29 million of their stock last week compared to $107.58 million in the week prior. Selling increased with insiders selling $2.86 billion of stock last week compared to $1.99 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 100.91. In other words, insiders sold more than 100 times as much stock as they purchased. The Sell/Buy ratio this week compares unfavorably with the prior week, when the ratio stood at 18.53.
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. Allscripts Healthcare Solutions, Inc. (MDRX): $13.81
Shares of this healthcare information services provider were acquired by 5 insiders:
- Director Dennis Chookaszian acquired 40,000 shares, paying $12.53 per share for a total amount of $501,200. Mr. Chookaszian increased his stake by 112.38% to 75,595 shares with this purchase.
- Director David D. Stevens acquired 39,600 shares, paying $12.74 per share for a total amount of $504,484. Mr. Stevens increased his stake by 216.41% to 57,899 shares with this purchase.
- CEO and President Paul Black acquired 23,625 shares, paying $12.69 per share for a total amount of $299,801. Mr. Black increased his stake by 4.27% to 576,527 shares with this purchase.
- Director Stuart L. Bascomb acquired 10,000 shares, paying $12.64 per share for a total amount of $126,400. Mr. Bascomb increased his stake by 54.65% to 28,299 shares with this purchase.
- Director Randy H. Thurman acquired 4,000 shares, paying $12.73 per share for a total amount of $50,916. Mr. Thurman increased his stake by 21.86% to 22,299 shares with this purchase.
You can view the list of recent insider transactions for Allscripts Healthcare Solutions, Inc. here.
|P/E: N/A||Forward P/E: 16.06||Industry P/E: 17.21|
|P/S: 1.63||Price/Book: 1.84||EV/EBITDA: 21.89|
|Market Cap: $2.38B||Avg. Daily Volume: 3,945,150||52 Week Range: $8.84 – $18.23|
2. Opko Health, Inc. (OPK): $7.83
CEO & Chairman Phillip Frost M.D. acquired 174,300 shares of this medical devices and drug development company, paying $7.34 per share for a total amount of $1.28 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: 19.6|
|P/S: 61.47||Price/Book: 15.26||EV/EBITDA: -92.74|
|Market Cap: $2.33B||Avg. Daily Volume: 2,513,320||52 Week Range: $4 – $7.83|
3. Catamaran Corporation (CTRX): $51.94
Shares of this pharmacy benefits management and healthcare IT solutions provider were acquired by 2 insiders:
- Director Harry M. Kraemer acquired 20,000 shares, paying $52.40 per share for a total amount of $1.05 million.
- Director Karen L. Katen acquired 2,000 shares, paying $55.00 per share for a total amount of $110,008.
You can view the list of recent insider transactions for Catamaran Corporation here.
|P/E: 74.2||Forward P/E: 22.1||Industry P/E: 15.46|
|P/S: 1.1||Price/Book: 2.36||EV/EBITDA: 27.88|
|Market Cap: $10.67B||Avg. Daily Volume: 1,575,690||52 Week Range: $35.66 – $57.4|
4. DexCom, Inc. (DXCM): $16.33
Director Jay S. Skyler acquired 70,000 shares of this medical devices company, paying $15.50 per share for a total amount of $1.09 million. Mr. Skyler increased his stake by 134.68% to 121,975 shares with this purchase.
You can view the list of recent insider transactions for DexCom, Inc. here.
|P/E: N/A||Forward P/E: N/A||Industry P/E: 20.48|
|P/S: 11.67||Price/Book: 15.13||EV/EBITDA: -22.57|
|Market Cap: $1.14B||Avg. Daily Volume: 393,111||52 Week Range: $9.36 – $17.16|
5. Akamai Technologies, Inc. (AKAM): $34.69
Chief Executive Officer Thomson F. Leighton acquired 30,000 shares of this content delivery and cloud infrastructure company, paying $34.75 per share for a total amount of $1.04 million. These shares were purchased indirectly through a trust.
Voluntary Disclosure: I hold a long position in Akamai.
You can view the list of recent insider transactions for Akamai Technologies, Inc. here.
|P/E: 30.97||Forward P/E: 15.77||Industry P/E: 22.34|
|P/S: 4.49||Price/Book: 2.63||EV/EBITDA: 11.44|
|Market Cap: $6.17B||Avg. Daily Volume: 3,854,770||52 Week Range: $25.9 – $42.53|
You can view the full list of purchases from this Insider Buying page.
Notable Insider Sales:
1. Primoris Services Corporation (PRIM): $21.48
Chairman, CEO & President Brian Pratt sold 1,250,000 shares of this construction services company for $19.77, generating $24.71 million from the sale. Mr. Pratt purchased 6,050 Common Stock shares as part of the Company’s Long-Term Retention Plan.
You can view the list of recent insider transactions for Primoris Services Corporation here.
|P/E: 19.53||Forward P/E: 13.68||Industry P/E: 12.91|
|P/S: 0.72||Price/Book: 3.35||EV/EBITDA: 8.1|
|Market Cap: $1.11B||Avg. Daily Volume: 384,872||52 Week Range: $10.9 – $21.75|
2. Estée Lauder Companies (EL): $63.34
Shares of this personal products company were sold by 2 insiders:
- Chairman Emeritus Leonard A. Lauder sold 250,000 shares for $65.69, generating $16.42 million from the sale.
- Executive Chairman William P. Lauder sold 200,000 shares for $65.73, generating $13.15 million from the sale.
You can view the list of recent insider transactions for The Est here.
|P/E: 27||Forward P/E: 21.47||Industry P/E: 20.8|
|P/S: 2.52||Price/Book: 8.09||EV/EBITDA: 13.54|
|Market Cap: $24.49B||Avg. Daily Volume: 1,910,200||52 Week Range: $49.81 – $66.51|
3. Verisk Analytics, Inc. (VRSK): $60.05
Shares of this risk management services provider were sold by 3 insiders:
- Chairman and CEO Frank J. Coyne sold 190,479 shares for $59.10, generating $11.26 million from the sale. These shares were sold indirectly through a trust.
- EVP and CFO Mark V. Anquillare sold 40,000 shares for $59.49, generating $2.38 million from the sale. These shares were sold as a result of exercising options immediately prior to the sale.
- Director David B. Wright sold 13,812 shares for $59.86, generating $826,786 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 Verisk Analytics, Inc. here.
|P/E: 31.28||Forward P/E: 22.75||Industry P/E: 22.62|
|P/S: 6.53||Price/Book: 39.08||EV/EBITDA: 16.69|
|Market Cap: $10.10B||Avg. Daily Volume: 834,844||52 Week Range: $44.92 – $60.29|
4. 3D Systems Corp. (DDD): $29.16
Shares of this 3D printers company were sold by 2 insiders:
- EVP, Chief Technology Officer Charles W. Hull sold 400,000 shares for $32.64, generating $13.05 million from the sale. These shares were sold indirectly through a trust.
- Director Walter G. Loewenbaum sold 15,000 shares for $32.20, generating $483,000 from the sale.
You can view the list of recent insider transactions for 3D Systems Corp. here.
|P/E: 61.65||Forward P/E: 22.6||Industry P/E: N/A|
|P/S: 7.98||Price/Book: 5.7||EV/EBITDA: 30.62|
|Market Cap: $2.68B||Avg. Daily Volume: 5,056,460||52 Week Range: $14.83 – $47.99|
5. Cousins Properties Incorporated (CUZ): $10.33
Director Lillian C. Giornelli sold 100,000 shares of this diversified REIT for $10.06, generating $1 million from the sale.
You can view the list of recent insider transactions for Cousins Properties Incorporated here.
|P/E: 32.79||Forward P/E: 18.12||Industry P/E: 31.57|
|P/S: 7.18||Price/Book: 2.36||EV/EBITDA: 26.71|
|Market Cap: $1.08B||Avg. Daily Volume: 703,825||52 Week Range: $6.85 – $10.39|
You can view the full list of sales from this Insider Sales page.