Insider Trading 07 June 2013: Freeport Mining Big Buyer This Week

June 10th, 2013
in contributors

by Asif Suria

Insider buying increased with insiders purchasing $152.67 million of their stock last week compared to $141 million in the week prior. Selling decreased with insiders selling $1.31 billion of stock last week compared to $1.8 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 dropped to 8.6. In other words, insiders sold more almost 9 times as much stock as they purchased. The Sell/Buy ratio this week compares favorably with the prior week, when the ratio stood at 22.56.

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 June 7, 2013

Insider Sell Buy Ratio June 7, 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:

Some of the insider purchases that did not make the top 5 list but are worth exploring include a cluster purchase by 5 insiders of Calamos Asset Management (CLMS), a cluster purchase by 4 insiders of Iron Mountain (IRM),additional purchases of Cabela’s (CAB) by its director Reuben Mark and a purchase of ACCO Brands (ACCO) by its CFO. The Iron Mountain purchases follow a nearly 20% drop in the stock last week after the company’s application to convert to a REIT has come under additional IRS scrutiny.

1. Freeport-McMoRan Copper & Gold Inc. (FCX): $30.92

Vice Chairman of the Board James C. Flores acquired 1,100,000 shares of this mining company, paying $31.17 per share for a total amount of $34.3 million. These shares were purchased indirectly by Sable Management, L.P. and Flores Family Limited Partnership.

We have been seeing consistent buying by insiders of several mining companies after the sharp decline in precious metal prices and the even sharper decline in mining stocks.

You can view the list of recent insider transactions for Freeport-McMoRan Copper & Gold Inc. here.

P/E: 10.07 Forward P/E: 8.14 Industry P/E: 187.98
P/S: 1.64 Price/Book: 1.64 EV/EBITDA: 5.03
Market Cap: $29.37B Avg. Daily Volume: 18,237,800 52 Week Range: $27.24 – $43.65

2. Synta Pharmaceuticals Corp. (SNTA): $4.55

Shares of this biotech company were acquired by 4 insiders:

  • Director Bruce Kovner acquired 2,000,000 shares, paying $4.64 per share for a total amount of $9.3 million. These shares were purchased indirectly through a trust.
  • SVP, Chief Medical Officer Vojo Vukovic acquired 10,000 shares, paying $4.58 per share for a total amount of $45,800. Mr. Vukovic increased his stake by 39.61% to 35,249 shares with this purchase.
  • President and CEO Safi R. Bahcall acquired 10,000 shares, paying $4.04 per share for a total amount of $40,390. Mr. Bahcall increased his stake by 0.50% to 1,993,135 shares with this purchase.
  • Director Robert N. Wilson acquired 10,000 shares, paying $5.00 per share for a total amount of $50,000. Mr. Wilson increased his stake by 1.45% to 699,679 shares with this purchase.

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

P/E: N/A Forward P/E: N/A Industry P/E: 24.36
P/S: N/A Price/Book: 5.29 EV/EBITDA: -6.7
Market Cap: $314.09M Avg. Daily Volume: 1,165,700 52 Week Range: $3.76 – $11.88

3. Opko Health, Inc. (OPK): $6.5

CEO & Chairman Phillip Frost M.D. acquired 402,500 shares of this medical devices and drug development company, paying $6.43 per share for a total amount of $2.6 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: 20.11
P/S: 31.67 Price/Book: 6.87 EV/EBITDA: -98.68
Market Cap: $2.19B Avg. Daily Volume: 1,623,910 52 Week Range: $4 – $7.83

4. Kohlberg Kravis Roberts & Co. (KKR): $19.56

Director Robert W. Scully acquired 91,000 shares of this private equity firm, paying $19.93 per share for a total amount of $1.8 million. Mr. Scully increased his stake by 3568.63% to 93,550 shares with this purchase. 17,450 of these shares were purchased indirectly by an immediate family member.

You can view the list of recent insider transactions for Kohlberg Kravis Roberts & Co. here.

P/E: 9.17 Forward P/E: 8.18 Industry P/E: N/A
P/S: 0.55 Price/Book: 2.24 EV/EBITDA: N/A
Market Cap: $5.16B Avg. Daily Volume: 2,615,000 52 Week Range: $11.61 – $21.6

5. Inland Real Estate Corp. (IRC): $10.19

Director Daniel L. Goodwin acquired 100,000 shares of this shopping center REIT, paying $10.60 per share for a total amount of $1.06 million. Mr. Goodwin increased his stake by 0.83% to 12,215,962 shares with this purchase.

You can view the list of recent insider transactions for Inland Real Estate Corp. here.

P/E: 55.38 Forward P/E: 10.84 Industry P/E: 92.77
P/S: 5.7 Price/Book: 3.08 EV/EBITDA: 18
Market Cap: $921.44M Avg. Daily Volume: 681,270 52 Week Range: $6.05 – $12.05

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

Notable Insider Sales:

1. National Research Corp. (NRCI): $42.44

CEO Michael D. Hays sold 5,000,000 shares of this research services provider for $14.15, generating $70.7 million from the sale.

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

P/E: 18.85 Forward P/E: 7.65 Industry P/E: N/A
P/S: 3.02 Price/Book: 4.48 EV/EBITDA: 8.43
Market Cap: $292.41M Avg. Daily Volume: 24,563 52 Week Range: $18.24 – $64.36

2. PVH Corp. (PVH): $113.7

Shares of this apparel company were sold by 2 insiders:

  • CEO of Tommy Hilfiger Fred Gehring sold 81,808 shares for $113.12, generating $9.3 million from the sale. These shares were sold indirectly by Elmira 5 B.V.
  • COO of Tommy Hilfiger Ludovicus Rudolph Onnink sold 16,486 shares for $113.12, generating $1.9 million from the sale. These shares were sold indirectly by Elmira 5 B.V.

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

P/E: 19.36 Forward P/E: 13.85 Industry P/E: 0.98
P/S: 1.5 Price/Book: 2.51 EV/EBITDA: 12.51
Market Cap: $9.20B Avg. Daily Volume: 947,727 52 Week Range: $73.26 – $125.5

3. Jarden Corp. (JAH): $45.39

Shares of this consumer products company were sold by 3 insiders:

  • Executive Chairman Martin E. Franklin sold 100,002 shares for $45.91, generating $4.6 million from the sale.
  • Vice Chairman and CFO Ian G. Ashken sold 60,000 shares for $45.90, generating $2.8 million from the sale.
  • Chief Executive Officer James E. Lillie sold 50,001 shares for $45.90, generating $2.3 million from the sale.

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

P/E: 25.2 Forward P/E: 12.17 Industry P/E: N/A
P/S: 0.81 Price/Book: 3.33 EV/EBITDA: 12.34
Market Cap: $5.56B Avg. Daily Volume: 899,070 52 Week Range: $26.2 – $49.28

4. Monro Muffler Brake Inc. (MNRO): $47.91

Shares of this auto repair services provider and tire retailer were sold by 3 insiders:

  • Director Robert G. Gross sold 180,000 shares for $47.47, generating $8.5 million from the sale. These shares were sold for personal tax planning purposes.
  • Director Donald Glickman sold 15,494 shares for $47.20, generating $731,377 from the sale. 9,658 of these shares were sold as a result of exercising options immediately prior to the sale.
  • Divisional Vice President Craig L. Hoyle sold 2,255 shares for $47.01, generating $106,008 from the sale.

You can view the list of recent insider transactions for Monro Muffler Brake Inc. here.

P/E: 36.35 Forward P/E: 21.11 Industry P/E: 10.34
P/S: 2.1 Price/Book: 4.2 EV/EBITDA: 17.11
Market Cap: $1.55B Avg. Daily Volume: 334,078 52 Week Range: $30.72 – $50.22

5. Liquidity Services, Inc. (LQDT): $35.055

Shares of this online auction company were sold by 3 insiders:

  • Chairman of the Board and CEO William P. Angrick III sold 200,000 shares for $39.80, generating $7.96 million from the sale. These shares were sold indirectly through a trust
  • VP, General Counsel & Secretary James Edwin Williams sold 9,964 shares for $40.00, generating $398,560 from the sale. These shares were sold as a result of exercising options immediately prior to the sale.
  • Exec. VP and President Asset Recovery G. Cayce Roy sold 4,212 shares for $39.80, generating $167,638 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 Liquidity Services, Inc. here.

P/E: 28.92 Forward P/E: 15.11 Industry P/E: N/A
P/S: 2.49 Price/Book: 4.41 EV/EBITDA: 12.64
Market Cap: $1.11B Avg. Daily Volume: 461,042 52 Week Range: $28.62 – $65.79

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

Voluntary Disclosure: I hold a long position in Iron Mountain (IRM).









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