July 8th, 2013
by Asif Suria
Insider buying increased with insiders purchasing $105.15 million of their stock last week compared to $81.86 million in the week prior. Selling decreased with insiders selling $434.02 million of stock last week compared to $631.1 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 down to 4.1. In other words, insiders sold more than 4 times as much stock as they purchased. The Sell/Buy ratio this week compares favorably with the prior week, when the ratio stood at 7.71. This is the lowest level of insider selling and the lowest sell/buy ratio we have seen since mid-January.
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:
An insider purchase that did not meet our criteria for inclusion in the top 5 list below but is noteworthy is an additional $73.52 million purchase of DaVita HealthCare Partners (DVA) by a subsidiary of Berkshire Hathaway (BRK-A) following a sharp decline in the stock this week on concerns of lower medicare payment for the company’s dialysis services. Another interesting but small purchase that did not make the top 5 list this week is a 10,000 share purchase by the CEO of TiVo (TIVO).
1. AGCO Corporation (AGCO): $50.39
Director Mallika Srinivasan acquired 37,898 shares of this farm & construction machinery company, paying $49.87 per share for a total amount of $1.9 million. These shares were purchased indirectly by TAFE Motors and Tractors Limited.
You can view the list of recent insider transactions for AGCO Corporation here.
|P/E: 9.54||Forward P/E: 8.51||Industry P/E: N/A|
|P/S: 0.48||Price/Book: 1.39||EV/EBITDA: 6.01|
|Market Cap: $4.90B||Avg. Daily Volume: 937,529||52 Week Range: $40.29 – $56.83|
2. Synta Pharmaceuticals Corp. (SNTA): $5.04
Shares of this biotech company were acquired by 2 insiders:
- Director Bruce Kovner acquired 150,000 shares, paying $4.71 per share for a total amount of $706,515. These shares were purchased indirectly through a trust.
- President and CEO Safi R. Bahcall acquired 10,000 shares, paying $5.03 per share for a total amount of $50,299. Mr. Bahcall increased his stake by 0.49% to 2,033,135 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: N/A|
|P/S: N/A||Price/Book: 6.18||EV/EBITDA: -4.21|
|Market Cap: $347.92M||Avg. Daily Volume: 1,579,770||52 Week Range: $3.76 – $11.88|
3. Opko Health, Inc. (OPK): $7.25
CEO & Chairman Phillip Frost M.D. acquired 95,501 shares of this medical devices and drug development company, paying $7.22 per share for a total amount of $689,397. These shares were purchased indirectly by 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: N/A|
|P/S: 34.72||Price/Book: 7.53||EV/EBITDA: -105.87|
|Market Cap: $2.44B||Avg. Daily Volume: 1,549,370||52 Week Range: $4 – $7.83|
4. Breitburn Energy Partners L.P. (BBEP): $15.24
Chief Executive Officer Halbert S. Washburn acquired 30,000 shares of this oil & gas company, paying $14.92 per share for a total amount of $447,600. Mr. Washburn increased his stake by 7.91% to 409,055 shares with this purchase.
You can view the list of recent insider transactions for Breitburn Energy Partners L.P. here.
|P/E: N/A||Forward P/E: 14.51||Industry P/E: N/A|
|P/S: 3.48||Price/Book: 0.86||EV/EBITDA: 13.34|
|Market Cap: $1.52B||Avg. Daily Volume: 838,021||52 Week Range: $14.01 – $21.75|
5. Abercrombie & Fitch Co. (ANF): $49.24
Director Craig R. Stapleton acquired 10,000 shares of this apparel company, paying $44.01 per share for a total amount of $440,149. Mr. Stapleton increased his stake by 57.48% to 27,398 shares with this purchase.
You can view the list of recent insider transactions for Abercrombie & Fitch Co. here.
|P/E: 16||Forward P/E: 12.5||Industry P/E: N/A|
|P/S: 0.84||Price/Book: 2.09||EV/EBITDA: 5.19|
|Market Cap: $3.86B||Avg. Daily Volume: 1,840,330||52 Week Range: $28.64 – $55.23|
You can view the full list of purchases from this Insider Buying page.
Notable Insider Sales:
1. PVH Corp. (PVH): $126.86
Shares of this apparel company were sold by 4 insiders:
- CEO of Tommy Hilfiger Fred Gehring sold 40,902 shares for $126.90, generating $5.2 million from the sale. These shares were sold indirectly by Elmira 5 B.V.
- Director Helen McCluskey sold 34,459 shares for $124.82, generating $4.3 million from the sale. These shares were sold as a result of exercising options immediately prior to the sale.
- COO of Tommy Hilfiger Ludovicus Rudolph Onnink sold 8,242 shares for $126.90, generating $1.06 million from the sale. These shares were sold indirectly by Elmira 5 B.V.
- Director Margaret Jenkins sold 3,300 shares for $126.26, generating $416,658 from the sale.
You can view the list of recent insider transactions for PVH Corp. here.
|P/E: 30.07||Forward P/E: 15.27||Industry P/E: N/A|
|P/S: 1.57||Price/Book: 2.48||EV/EBITDA: 14.26|
|Market Cap: $10.28B||Avg. Daily Volume: 824,395||52 Week Range: $73.26 – $128.58|
2. Comcast Corporation (CMCSA): $41.7
Vice Chairman and CFO Michael J. Angelakis sold 144,070 shares of this entertainment and telecommunications provider for $41.50, generating $5.9 million from the sale. 54,733 of these shares were sold indirectly through a trust.
You can view the list of recent insider transactions for Comcast Corporation here.
|P/E: 17.58||Forward P/E: 15||Industry P/E: N/A|
|P/S: 1.72||Price/Book: 2.25||EV/EBITDA: 7.5|
|Market Cap: $109.81B||Avg. Daily Volume: 12,426,500||52 Week Range: $31.04 – $43.74|
3. Groupon, Inc. (GRPN): $9.12
Director Bradley A. Keywell sold 500,000 shares of Groupon for $8.47, generating $4.2 million from the sale. These shares were sold indirectly by Rugger Ventures LLC.
You can view the list of recent insider transactions for Groupon, Inc. here.
|P/E: N/A||Forward P/E: 31.45||Industry P/E: N/A|
|P/S: 2.54||Price/Book: 7.87||EV/EBITDA: 31.48|
|Market Cap: $6.03B||Avg. Daily Volume: 16,742,000||52 Week Range: $2.6 – $9.43|
4. Bonanza Creek Energy, Inc. (BCEI): $36.95
President & CEO Michael R. Starzer sold 100,000 shares of this oil and gas exploration company for $35.56, generating $3.6 million from the sale.
You can view the list of recent insider transactions for Bonanza Creek Energy, Inc. here.
|P/E: 29.97||Forward P/E: 11.3||Industry P/E: N/A|
|P/S: 5.54||Price/Book: 2.45||EV/EBITDA: 9.39|
|Market Cap: $1.49B||Avg. Daily Volume: 492,465||52 Week Range: $15 – $42.36|
5. Middleby Corp. (MIDD): $179.04
CEO, Chairman, President Selim A. Bassoul sold 20,047 shares of this commercial food equipment company for $173.38, generating $3.5 million from the sale.
You can view the list of recent insider transactions for Middleby Corp. here.
|P/E: 26.82||Forward P/E: 20.07||Industry P/E: N/A|
|P/S: 2.9||Price/Book: 4.89||EV/EBITDA: 16.2|
|Market Cap: $3.36B||Avg. Daily Volume: 94,264||52 Week Range: $94.03 – $179.27|
You can view the full list of sales from this Insider Sales page.