Insider Trading 03 October 2014: Insider Buying Has Been Lackluster Over the Last Eight Weeks

October 6th, 2014
in contributors, syndication

by Asif Suria

Insider buying increased last week with insiders buying $72.32 million of stock compared to $30.92 million in the week prior. Selling decreased with insiders selling $432.89 million of stock last week compared to $587.59 million in the week prior.

Insider buying has been lackluster over the last eight weeks and with the start of a new quarter, insider transactions will likely remain anemic for the next few weeks. Whether this decline in insider buying combined with an erratic market and increase in volatility marks an intermediate market top remains to be seen.

Follow up:

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 5.99.In other words, insiders sold almost 6 times as much stock as they purchased. The Sell/Buy ratio this week compares favorably with the prior week, when the ratio stood at 19. 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 3, 2014

Insider Sell Buy Ratio October 3, 2014

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. AGCO Corporation (AGCO): $46.44

Director Mallika Srinivasan acquired 1,291,000 shares of this farm & construction machinery company, paying $45.87 per share for a total amount of $59.22 million. These shares were purchased indirectly by Chennai, India based TAFE Motors and Tractors Limited.

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

P/E: 8.51 Forward P/E: 10.23 Industry P/E: 15.02
P/S: 0.41 Price/Book: 1.07 EV/EBITDA: 4.82
Market Cap: $4.36B Avg. Daily Volume: 1,362,570 52 Week Range: $45 – $64.6

 

2. Opko Health, Inc. (OPK): $8.38

CEO & Chairman Phillip Frost M.D. acquired 124,000 shares of this medical devices and drug development company, paying $8.43 per share for a total amount of $1.05 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: 26.44
P/S: 40.97 Price/Book: 3.86 EV/EBITDA: -41.56
Market Cap: $3.60B Avg. Daily Volume: 2,384,880 52 Week Range: $7.32 – $12.95

 

3. Synta Pharmaceuticals Corp. (SNTA): $3.21

Director Bruce Kovner acquired 300,000 shares of this biotech company, paying $3.08 per share for a total amount of $923,130. These shares were purchased indirectly by KHO Holdings

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: 33.32
P/S: N/A Price/Book: 4.33 EV/EBITDA: -2.77
Market Cap: $335.02M Avg. Daily Volume: 1,555,000 52 Week Range: $2.78 – $7.22

 

4. Civeo Corporation (CVEO): $13.01

Shares of this workforce accommodations provider were acquired by 3 insiders:

  • President and Chief Executive Officer Bradley J. Dodson acquired 24,000 shares, paying $12.86 per share for a total amount of $308,640. Mr. Dodson increased his stake by 8.04% to 322,519 shares with this purchase.
  • Director Gary L. Rosenthal acquired 8,000 shares, paying $12.21 per share for a total amount of $97,680. Mr. Rosenthal increased his stake by 14.57% to 62,919 shares with this purchase.
  • Director Mayank Ashar acquired 8,000 shares, paying $12.81 per share for a total amount of $102,480. Mr. Ashar increased his stake by 147.57% to 13,421 shares with this purchase.

These insider purchases follow a more than 50% plunge in the stock price last week after the company decided not to pursue a REIT conversion and instead decided to move its headquarters to Canada. The company derives 90% of its revenue outside the United States with a specific focus on Canadian oil sands and natural resource rich regions on Australia. The company expects a tax rate of 25 to 26% with this move.

Civeo sports a dividend yield of 4% and trades for just 5 times EBITDA. The company is expecting a weak Q4 and is guiding towards lower revenue and margins in 2015 as well.

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

P/E: 10.28 Forward P/E: 37.17 Industry P/E: N/A
P/S: 1.36 Price/Book: 1.02 EV/EBITDA: 5.06
Market Cap: $1.39B Avg. Daily Volume: 1,620,790 52 Week Range: $11.6 – $28.4

 

5. Univest Corporation of Pennsylvania (UVSP): $19.01

Director Thomas Scannapieco acquired 16,000 shares of this regional bank, paying $18.93 per share for a total amount of $302,948. These shares were purchased indirectly by Mr. Scannapieco’s spouse.

You can view the list of recent insider transactions for Univest Corporation of Pennsylvania here.

P/E: 14.4 Forward P/E: 11.32 Industry P/E: 14.36
P/S: 2.74 Price/Book: 1.07 EV/EBITDA: N/A
Market Cap: $308.30M Avg. Daily Volume: 28,280 52 Week Range: $17.67 – $21.54

 

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

Notable Insider Sales:

1. Iron Mountain Inc. (IRM): $33.1

Director Vincent J. Ryan sold 600,000 shares of this storage and information management services provider for $33.65, generating $20.19 million from the sale. These shares were sold indirectly through a trust.

You can view the list of recent insider transactions for Iron Mountain Inc. here.

P/E: 17.44 Forward P/E: 24.34 Industry P/E: 23.67
P/S: 2.05 Price/Book: 4.89 EV/EBITDA: 11.82
Market Cap: $6.39B Avg. Daily Volume: 1,833,980 52 Week Range: $23.13 – $34.31

 

2. Lions Gate Entertainment Corp. (LGF): $32.87

Shares of this movie production and distribution company were sold by 2 insiders:

  • Chief Executive Officer Jon Feltheimer sold 250,000 shares for $32.08, generating $8.02 million from the sale.
  • Co-Chief Operating Officer Brian Goldsmith sold 25,000 shares for $32.08, generating $802,045 from the sale.

You can view the list of recent insider transactions for Lions Gate Entertainment Corp. here.

P/E: 26.96 Forward P/E: 18.26 Industry P/E: 22.82
P/S: 1.78 Price/Book: 8.36 EV/EBITDA: 20.26
Market Cap: $4.51B Avg. Daily Volume: 1,231,620 52 Week Range: $24.54 – $37.75

 

3. Accenture plc (ACN): $80.32

Shares of this management and technology consulting company were sold by 6 insiders:

  • Chairman & CEO Pierre Nanterme sold 44,552 shares for $78.98, generating $3.52 million from the sale.
  • Group Chief Exec-Growth Markets Gianfranco Casati sold 27,121 shares for $78.94, generating $2.14 million from the sale. These shares were sold as a result of exercising options immediately prior to the sale.
  • Group Chief Exec-Com, Med & Tech Robert E. Sell sold 10,934 shares for $78.91, generating $862,845 from the sale. These shares were sold as a result of exercising options immediately prior to the sale.
  • Chief Financial Officer David Rowland sold 6,335 shares for $78.93, generating $500,015 from the sale.
  • Chief Accounting Officer Richard P. Clark sold 5,000 shares for $79.10, generating $395,494 from the sale.
  • Chief Operating Officer Johan Deblaere sold 1,600 shares for $79.07, generating $126,510 from the sale.

You can view the list of recent insider transactions for Accenture plc here.

P/E: 17.77 Forward P/E: 15.3 Industry P/E: 17.47
P/S: 1.67 Price/Book: 8.75 EV/EBITDA: 9.34
Market Cap: $50.70B Avg. Daily Volume: 2,586,520 52 Week Range: $69.78 – $85.88

 

4. Alleghany Corporation (Y): $424.79

Director Jefferson Kirby sold 12,000 shares of this insurance company for $420.35, generating $5.04 million from the sale.

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

P/E: 10.53 Forward P/E: 14.34 Industry P/E: 11.97
P/S: 1.34 Price/Book: 0.93 EV/EBITDA: 6.65
Market Cap: $6.95B Avg. Daily Volume: 47,954 52 Week Range: $361.01 – $445.99

 

5. Micron Technology, Inc. (MU): $33.94

Shares of this semiconductor company were sold by 2 insiders:

  • President Mark Adams sold 63,000 shares for $34.48, generating $2.17 million from the sale.
  • CFO & VP of Finance Ronald C. Foster sold 50,000 shares for $34.41, generating $1.72 million from the sale.

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

P/E: 13.36 Forward P/E: 8.26 Industry P/E: 17.09
P/S: 2.21 Price/Book: 3.35 EV/EBITDA: 7.06
Market Cap: $36.25B Avg. Daily Volume: 24,011,800 52 Week Range: $16.17 – $34.85

 

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

Connect with me on LinkedIn: http://www.linkedin.com/in/asifsuria

kedIn: http://www.linkedin.com/in/asifsuria









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