Insider Trading 06 December 2013: Rosetta Stone. Monster Beverage, Facebook, Goldman Sachs Selling

December 8th, 2013
in contributors

by Asif Suria

Insider buying increased with insiders purchasing $69.73 million of their stock last week compared to $9.99 million in the week prior. Selling declined with insiders selling $990.8 million of stock last week compared to $1.73 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 decreased to 14.2. In other words, insiders sold more than 14 times as much stock as they purchased. The Sell/Buy ratio this week compares favorably with the prior week, when the ratio stood at 173.3.

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 December 6, 2013

Insider Sell Buy Ratio December 6, 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 purchase by the CEO of ServiceSource International (SREV), a purchase by the CFO of American Campus Communities (ACC) and a cluster of purchases by insiders of Kratos Defense and Security Solutions (KTOS).

1. Merrimack Pharmaceuticals, Inc. (MACK): $4.72

Shares of this biotech company were acquired by 6 insiders:

  • Director Gary L. Crocker acquired 207,000 shares, paying $3.72 per share for a total amount of $769,536. These shares were purchased indirectly by Mr. Crocker’s wife and other entities.
  • Director Michael E. Porter acquired 150,000 shares, paying $3.89 per share for a total amount of $583,093. Mr. Porter increased his stake by 53.98% to 427,865 shares with this purchase.
  • Director Sarah E. Nash acquired 47,500 shares, paying $4.17 per share for a total amount of $198,306. Ms. Nash increased her stake by 5.11% to 976,994 shares with this purchase.
  • President and CEO Robert J. Mulroy acquired 33,100 shares, paying $4.42 per share for a total amount of $146,226. Mr. Mulroy increased his stake by 3.46% to 989,644 shares with this purchase.
  • SVP of Corporate Operations William M. Mcclements acquired 9,000 shares, paying $3.71 per share for a total amount of $33,374.
  • Director Anthony J. Sinskey acquired 3,800 shares, paying $3.91 per share for a total amount of $14,877. Mr. Sinskey increased his stake by 0.98% to 392,543 shares with this purchase.

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

P/E: N/A Forward P/E: N/A Industry P/E: 16.05
P/S: 8.94 Price/Book: N/A EV/EBITDA: -2.15
Market Cap: $483.08M Avg. Daily Volume: 1,895,950 52 Week Range: $2.05 – $7.09

2. Wheeler Real Estate Investment Trust, Inc. (WHLR): $4.17

Shares of this retail REIT were acquired by 2 insiders:

  • Chairman & CEO Jon S. Wheeler acquired 345,000 shares, paying $4.20 per share for a total amount of $1.45 million. Mr. Wheeler increased his stake by 419.71% to 427,200 shares with this purchase.
  • Director Carl B. McGowan Jr. acquired 1,000 shares, paying $4.34 per share for a total amount of $4,339. Mr. Mcgowan increased his stake by 100.00% to 2,000 shares with this purchase.

You can view the list of recent insider transactions for Wheeler Real Estate Investment Trust, Inc. here.

P/E: N/A Forward P/E: N/A Industry P/E: N/A
P/S: 4.96 Price/Book: 1.71 EV/EBITDA: -909.23
Market Cap: $29.69M Avg. Daily Volume: 22,048 52 Week Range: $3.75 – $6.84

3. JMP Group Inc. (JMP): $7.33

CEO Joseph A. Jolson acquired 209,808 shares of this investment brokerage, paying $6.61 per share for a total amount of $1.39 million. These shares were purchased indirectly through a trust.

You can view the list of recent insider transactions for JMP Group Inc. here.

P/E: 30.93 Forward P/E: 10.62 Industry P/E: 14.54
P/S: 1.34 Price/Book: 1.25 EV/EBITDA: N/A
Market Cap: $160.15M Avg. Daily Volume: 47,853 52 Week Range: $5.22 – $7.56

4. Mid-America Apartment Communities Inc. (MAA): $61.9

Shares of this apartment REIT were acquired by 2 insiders:

  • Director Harold W. Ripps acquired 10,000 shares, paying $60.53 per share for a total amount of $605,333. Mr. Ripps increased his stake by 7.60% to 141,569 shares with this purchase.
  • EVP, General Counsel Robert J. DelPriore acquired 1,000 shares, paying $60.25 per share for a total amount of $60,250. These shares were purchased indirectly by 401-K.

You can view the list of recent insider transactions for Mid-America Apartment Communities Inc. here.

P/E: 17.92 Forward P/E: 12.26 Industry P/E: N/A
P/S: 8.57 Price/Book: 2.68 EV/EBITDA: 21.71
Market Cap: $4.63B Avg. Daily Volume: 769,120 52 Week Range: $59.98 – $74.94

5. Halcon Resources Corp. (HK): $3.81

Shares of this oil and gas exploration company were acquired by 5 insiders:

  • EVP, CFO and Treasurer Mark Mize acquired 50,000 shares, paying $4.00 per share for a total amount of $199,898. Mr. Mize increased his stake by 9.13% to 597,757 shares with this purchase.
  • EVP, Chief Operating Officer Charles E. Cusack III acquired 40,000 shares, paying $3.81 per share for a total amount of $152,320. Mr. Cusack increased his stake by 8.46% to 512,584 shares with this purchase.
  • EVP, General Counsel David S. Elkouri acquired 25,000 shares, paying $3.72 per share for a total amount of $93,120. Mr. Elkouri increased his stake by 10.70% to 258,584 shares with this purchase.
  • Director Tucker S. Bridwell acquired 10,000 shares, paying $3.80 per share for a total amount of $37,999. These shares were purchased indirectly by an FLP.
  • VP, Investor Relations Scott M. Zuehlke acquired 2,500 shares, paying $3.99 per share for a total amount of $9,975. Mr. Zuehlke increased his stake by 4.49% to 58,171 shares with this purchase.

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

P/E: N/A Forward P/E: 15.88 Industry P/E: N/A
P/S: 1.98 Price/Book: 0.89 EV/EBITDA: 9.61
Market Cap: $1.58B Avg. Daily Volume: 6,228,170 52 Week Range: $3.6 – $8.28

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

Notable Insider Sales:

1. Rosetta Stone, Inc. (RST): $11.72

Director Laura Witt sold 1,489,294 shares of this language learning software company for $11.42, generating $17 million from the sale. These shares were sold indirectly through a trust.

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

P/E: N/A Forward P/E: 106.55 Industry P/E: 24.78
P/S: 0.98 Price/Book: 1.87 EV/EBITDA: -76.88
Market Cap: $256.54M Avg. Daily Volume: 158,330 52 Week Range: $11.34 – $18.3

2. Jarden Corp. (JAH): $57.13

Shares of this consumer products company were sold by 4 insiders:

  • Executive Chairman Martin E. Franklin sold 250,000 shares for $55.93, generating $13.98 million from the sale.
  • Vice Chairman and CFO Ian G. Ashken sold 37,500 shares for $56.01, generating $2.1 million from the sale.
  • Chief Executive Officer James E. Lillie sold 30,000 shares for $56.06, generating $1.68 million from the sale.
  • EVP, General Counsel and Secretary John Edward Capps sold 10,000 shares for $55.84, generating $558,400 from the sale.

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

P/E: 29.43 Forward P/E: 14.39 Industry P/E: N/A
P/S: 1.05 Price/Book: 2.95 EV/EBITDA: 12.72
Market Cap: $7.35B Avg. Daily Volume: 981,167 52 Week Range: $32.9333 – $57.67

3. Monster Beverage Corporation (MNST): $63.05

Shares of this beverages company were sold by 3 insiders:

  • Chairman and CEO Rodney C. Sacks sold 130,000 shares for $60.52, generating $7.87 million from the sale.
  • Vice Chairman and President Hilton H. Schlosberg sold 130,000 shares for $60.50, generating $7.87 million from the sale.
  • Senior VP – Monster Energy Co. Thomas J. Kelly sold 8,804 shares for $59.40, generating $522,958 from the sale.

You can view the list of recent insider transactions for Monster Beverage Corporation here.

P/E: 33.27 Forward P/E: 26.27 Industry P/E: 24.72
P/S: 4.8 Price/Book: 10.87 EV/EBITDA: 15.54
Market Cap: $10.57B Avg. Daily Volume: 1,529,130 52 Week Range: $45.38 – $66.12

4. Facebook, Inc. (FB): $47.94

Shares of Facebook were sold by 3 insiders:

  • Chief Operating Officer Sheryl Sandberg sold 283,334 shares for $47.43, generating $13.44 million from the sale.
  • Chief Technology Officer Michael Todd Schroepfer sold 25,000 shares for $46.90, generating $1.17 million from the sale.
  • Chief Accounting Officer Jas Athwal sold 500 shares for $45.97, generating $22,985 from the sale.

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

P/E: 122.61 Forward P/E: 42.8 Industry P/E: 34.04
P/S: 17.27 Price/Book: 9.04 EV/EBITDA: 32.09
Market Cap: $117.68B Avg. Daily Volume: 77,252,600 52 Week Range: $22.67 – $54.83

5. The Goldman Sachs Group, Inc. (GS): $167.21

Shares of Goldman Sachs were sold by 2 insiders:

  • Vice Chairman Michael J. Evans sold 67,546 shares for $168.07, generating $11.35 million from the sale.
  • EVP, Global Head of HCM Edith W. Cooper sold 11,587 shares for $169.74, generating $1.97 million from the sale.

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

P/E: 10.13 Forward P/E: 10.92 Industry P/E: 14.54
P/S: 2.19 Price/Book: 1.08 EV/EBITDA: N/A
Market Cap: $76.67B Avg. Daily Volume: 3,386,460 52 Week Range: $115.62 – $171.58

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















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