Insider Trading 04 October 2013: NGL Energy Selling

October 6th, 2013
in contributors, syndication

by Asif Suria

Insider buying decreased with insiders purchasing $40.08 million of their stock last week compared to $69.72 million in the week prior. Selling also decreased with insiders selling $1.08 billion of stock last week compared to $1.32 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 26.96.In other words, insiders sold about 27 times as much stock as they purchased. The Sell/Buy ratio this week compares unfavorably with the prior week, when the ratio stood at 18.99.

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 October 4, 2013

Insider Sell Buy Ratio October 4, 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. Copart, Inc. (CPRT): $33.07

Chairman of the Board Willis J. Johnson acquired 633,300 shares of this online auctions and vehicle remarketing services provider, paying $31.39 per share for a total amount of $19.88 million. These shares were purchased indirectly through a trust.

This is a sizable purchase that follows a smaller 9,500 purchase by a Senior Vice President in June. With operating margins topping 27% and quarterly revenue grown of 16.4%, I can see why the insiders find the company attractive but the stock isn’t exactly cheap selling at over 13 times EBITDA.

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

P/E: 23.79 Forward P/E: 17.88 Industry P/E: 18.78
P/S: 3.97 Price/Book: 5.45 EV/EBITDA: 13.18
Market Cap: $4.15B Avg. Daily Volume: 747,551 52 Week Range: $26.35 – $38.26

2. UniFirst Corp. (UNF): $100.64

President and CEO Ronald D. Croatti acquired 8,242 shares of this workplace uniform and protective gear provider, paying $91.00 per share for a total amount of $750,022. Mr. Croatti increased his stake by 0.80% to 1,033,770 shares with this purchase.

The CEO appears to have had a change of heart from earlier this year when he was selling shares. With 13.22% operating margins, no net debt, quarterly revenue and earnings growing in the low single digits and trading at 8 times EBITDA, there is nothing exciting about this business but its slow and steady pace has rewarded investors well over the years. The stock is up more than 122% over the last two years when compared to a gain of 48% for the S&P500 index over the same time period.

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

P/E: 18.58 Forward P/E: 16.91 Industry P/E: 16.03
P/S: 1.53 Price/Book: 2.05 EV/EBITDA: 8.02
Market Cap: $2.01B Avg. Daily Volume: 48,326 52 Week Range: $65.85 – $104.76

3. The Marcus Corporation (MCS): $14.09

Director Philip L. Milstein acquired 28,481 shares of this hotels and movie theatre operator, paying $13.14 per share for a total amount of $374,098. Mr. Milstein increased his stake by 36.81% to 105,860 shares with this purchase.

I have followed Marcus for several years and have often traded the stock, buying when it dropped below book value. Over the last three years I have not seen a single insider purchase of Marcus and this purchase looks suspect because the stock did not trade close to $13.14 on the day this purchase was made.

You can view the list of recent insider transactions for The Marcus Corporation here.

P/E: 19.04 Forward P/E: 16.38 Industry P/E: 29.06
P/S: 0.91 Price/Book: 1.18 EV/EBITDA: 8.13
Market Cap: $381.74M Avg. Daily Volume: 65,372 52 Week Range: $10.27 – $14.97

4. UIL Holdings Corporation (UIL): $36.97

Director Arnold L. Chase acquired 10,000 shares of this electric utility, paying $37.25 per share for a total amount of $372,500. Mr. Chase increased his stake by 2.40% to 427,377 shares with this purchase.

You can view the list of recent insider transactions for UIL Holdings Corporation here.

P/E: 16.65 Forward P/E: 16.07 Industry P/E: 15.04
P/S: 1.17 Price/Book: 1.65 EV/EBITDA: 8.9
Market Cap: $1.88B Avg. Daily Volume: 273,671 52 Week Range: $32.33 – $42.14

5. Lehigh Gas Partners LP (LGP): $28.01

Shares of this wholesale distributor of motor fuels were acquired by 2 insiders:

  • Director John B. Reilly III acquired 3,572 shares, paying $28.00 per share for a total amount of $100,013. These shares were purchased indirectly through a trust.
  • Chairman of the Board Joseph V. Topper Jr. acquired 3,571 shares, paying $28.00 per share for a total amount of $99,988. These shares were purchased indirectly through a trust.

You can view the list of recent insider transactions for Lehigh Gas Partners LP here.

P/E: 43.63 Forward P/E: 19.59 Industry P/E: 11.35
P/S: 0.22 Price/Book: 33.58 EV/EBITDA: 14.51
Market Cap: $421.58M Avg. Daily Volume: 36,069 52 Week Range: $16.66 – $29.18

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

Notable Insider Sales:

1. NGL Energy Partners LP (NGL): $30.43

Director John T. Raymond sold 520,000 shares of this propane and natural gas company for $30.00, generating $15.6 million from the sale. These shares were sold indirectly by NGP Midstream & Resources, LLC.

You can view the list of recent insider transactions for NGL Energy Partners LP here.

P/E: 34.82 Forward P/E: 15.85 Industry P/E: 11.35
P/S: 0.39 Price/Book: 1.87 EV/EBITDA: 15.38
Market Cap: $2.08B Avg. Daily Volume: 361,822 52 Week Range: $21.19 – $33.9

2. ServiceNow, Inc. (NOW): $54.43

Shares of this software-as-a-service provider were sold by 2 insiders:

  • Chief Product Officer Frederic B. Luddy sold 162,000 shares for $51.75, generating $8.38 million from the sale. 12,000 of these shares were sold indirectly by Mr. Luddy’s spouse.
  • President & CEO Frank Slootman sold 40,000 shares for $51.25, generating $2.05 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 ServiceNow, Inc. here.

P/E: N/A Forward P/E: 362.87 Industry P/E: 14.14
P/S: 21.77 Price/Book: 26.51 EV/EBITDA: -203.94
Market Cap: $7.45B Avg. Daily Volume: 1,528,700 52 Week Range: $25.54 – $55.46

3. SYNNEX Corp. (SNX): $61.86

Shares of this business services provider were sold by 4 insiders:

  • Director Matthew Miau sold 113,044 shares for $61.70, generating $6.97 million from the sale. These shares were sold indirectly by Silver Star Development Limited
  • President, U.S. Distribution Peter Larocque sold 15,000 shares for $61.50, generating $922,493 from the sale. These shares were sold as a result of exercising options immediately prior to the sale.
  • Director Fred A. Breidenbach sold 10,000 shares for $61.34, generating $613,429 from the sale.
  • Chief Operating Officer Dennis Polk sold 3,000 shares for $61.20, generating $183,600 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 SYNNEX Corp. here.

P/E: 19.85 Forward P/E: 13.33 Industry P/E: 22.03
P/S: 0.22 Price/Book: 1.67 EV/EBITDA: 8.78
Market Cap: $2.29B Avg. Daily Volume: 220,011 52 Week Range: $30.7 – $64.5

4. Sapient Corp. (SAPE): $15.53

Director Stuart J. Moore sold 500,000 shares of this business software & services company for $15.75, generating $7.87 million from the sale. 203,000 of these shares were sold indirectly through a trust.

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

P/E: 30.39 Forward P/E: 23.18 Industry P/E: 24.34
P/S: 1.83 Price/Book: 4.11 EV/EBITDA: 12.57
Market Cap: $2.17B Avg. Daily Volume: 730,111 52 Week Range: $9.9 – $16.15

5. Cantel Medical Corp. (CMN): $32.54

Shares of this infection prevention and control products provider were sold by 6 insiders:

  • Chairman Charles M. Diker sold 50,000 shares for $30.72, generating $1.54 million from the sale.
  • President and CEO Andrew A. Krakauer sold 30,761 shares for $31.72, generating $975,739 from the sale.
  • Director Mark N. Diker sold 25,000 shares for $31.46, generating $786,512 from the sale.
  • Senior V.P., CFO and Treasurer Craig A. Sheldon sold 9,876 shares for $32.03, generating $316,328 from the sale. 3,022 of these shares were sold as a result of exercising options immediately prior to the sale.
  • Vice President and Controller Steven C. Anaya sold 7,108 shares for $32.46, generating $230,726 from the sale. 1,494 of these shares were sold as a result of exercising options immediately prior to the sale.
  • Senior VP and General Counsel Eric W. Nodiff sold 5,235 shares for $31.14, generating $163,019 from the sale.

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

P/E: 34.25 Forward P/E: 26.03 Industry P/E: 20.57
P/S: 3.13 Price/Book: 4.15 EV/EBITDA: 17.35
Market Cap: $1.34B Avg. Daily Volume: 97,248 52 Week Range: $16.1133 – $32.72

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









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