November 23rd, 2014
by Asif Suria
Insider buying decreased last week with insiders buying $68.12 million of stock compared to $73.83 million in the week prior. Selling increased a little with insiders selling $1.69 billion of stock last week compared to $1.67 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 24.94. In other words, insiders sold almost 25 times as much stock as they purchased. The Sell/Buy ratio this week compares unfavorably with the prior week, when the ratio stood at 22.67.
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 November 21, 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. Ashford, Inc. (AINC): $104.52
Shares of this real estate asset management company were acquired by 2 insiders:
- Chief Executive Officer Montgomery J. Bennett acquired 83,246 shares, paying $92.27 per share for a total amount of $7.68 million. These shares were acquired indirectly by MJB Investments LP.
- Chief Strategy Officer J Robison Hays acquired 500 shares, paying $94.12 per share for a total amount of $47,059. Mr. Hays increased his stake by 6.50% to 8,194 shares with this purchase.
I got very different historical price data from various sites but it is very clear that the stock has close to doubled during its short trading life. It is interesting to see insiders buying right after the spin-off even as the stock marched higher.
You can view the list of recent insider transactions for Ashford, Inc. here.
|P/E: N/A||Forward P/E: N/A||Industry P/E: N/A|
|P/S: N/A||Price/Book: N/A||EV/EBITDA: N/A|
|Market Cap: $N/A||Avg. Daily Volume: 110,820||52 Week Range: $64.11 – $111.87|
2. Aon plc (AON): $91.39
Director Lester B. Knight acquired 60,000 shares of this risk management, HR services and insurance company, paying $90.44 per share for a total amount of $5.43 million. These shares were purchased indirectly through a trust.
You can view the list of recent insider transactions for Aon plc here.
|P/E: 21.47||Forward P/E: 14.96||Industry P/E: 21.33|
|P/S: 2.16||Price/Book: 3.57||EV/EBITDA: 12.78|
|Market Cap: $26.06B||Avg. Daily Volume: 1,423,870||52 Week Range: $76.49 – $91.52|
3. Air Products & Chemicals Inc. (APD): $145.15
Chairman, President and CEO Seifi Ghasemi acquired 23,000 shares of this supplier of industrial gases and performance material, paying $138.97 per share for a total amount of $3.2 million. Mr. Ghasemi increased his stake by 29.86% to 100,026 shares with this purchase.
You can view the list of recent insider transactions for Air Products & Chemicals Inc. here.
|P/E: 31.48||Forward P/E: 20.13||Industry P/E: 18.81|
|P/S: 2.92||Price/Book: 4.14||EV/EBITDA: 13.88|
|Market Cap: $31.02B||Avg. Daily Volume: 1,914,840||52 Week Range: $102.73 – $145.39|
4. Rackspace Hosting, Inc. (RAX): $44.92
Director Graham M. Weston acquired 58,480 shares of this server and cloud hosting company, paying $42.75 per share for a total amount of $2.5 million. Mr. Weston increased his stake by 30.14% to 252,504 shares with this purchase.
You can view the list of recent insider transactions for Rackspace Hosting, Inc. here.
|P/E: 68.06||Forward P/E: 48.83||Industry P/E: 16.91|
|P/S: 3.68||Price/Book: 5.2||EV/EBITDA: 13.44|
|Market Cap: $6.45B||Avg. Daily Volume: 2,985,050||52 Week Range: $26.18 – $46.35|
5. SFX Entertainment Inc. (SFXE): $4.12
CEO and Chairman of the Board Robert F. Sillerman acquired 545,973 shares of this live events and digital entertainment producer, paying $4.01 per share for a total amount of $2.19 million. These shares were acquired indirectly by Sillerman Investment Company III LLC.
The only thing more troubling than the lack of operating profits and growing debt on the balance sheet is the behavior of the CEO as he disembarked from a private jet earlier this year. Following this behavior, an analyst asked on the company’s earnings conference call asked him about it and remarked, “We’re just trying to make sure that you’re still sane.”
You can view the list of recent insider transactions for SFX Entertainment Inc. here.
|P/E: N/A||Forward P/E: N/A||Industry P/E: 31.03|
|P/S: 1.07||Price/Book: 1.35||EV/EBITDA: -7.9|
|Market Cap: $373.14M||Avg. Daily Volume: 743,411||52 Week Range: $3.52 – $12.15|
You can view the full list of purchases from this Insider Buying page.
Notable Insider Sales:
1. The Charles Schwab Corporation (SCHW): $28.28
Chairman Charles R. Schwab sold 1,500,000 shares of this investment brokerage for $28.58, generating $42.88 million from the sale. These shares were sold indirectly by a limited partnership.
You can view the list of recent insider transactions for The Charles Schwab Corporation here.
|P/E: 30.44||Forward P/E: 24.81||Industry P/E: 21.87|
|P/S: 6.28||Price/Book: 3.49||EV/EBITDA: N/A|
|Market Cap: $36.93B||Avg. Daily Volume: 7,281,400||52 Week Range: $23.35 – $31|
2. Cheniere Energy, Inc. (LNG): $74.42
Shares of this natural gas storage and pipeline company were sold by 2 insiders:
- Chairman, CEO & President Charif Souki sold 450,000 shares for $71.69, generating $32.26 million from the sale.
- Sr. VP and General Counsel Greg W. Rayford sold 12,000 shares for $71.43, generating $857,186 from the sale.
You can view the list of recent insider transactions for Cheniere Energy, Inc. here.
|P/E: N/A||Forward P/E: N/A||Industry P/E: 32.73|
|P/S: 62.46||Price/Book: N/A||EV/EBITDA: -100.99|
|Market Cap: $16.69B||Avg. Daily Volume: 3,645,070||52 Week Range: $38.42 – $85|
3. Jarden Corp. (JAH): $67.99
Shares of this consumer products company were sold by 3 insiders:
- Executive Chairman Martin E. Franklin sold 134,000 shares for $66.83, generating $8.95 million from the sale.
- Vice Chairman and President Ian G. Ashken sold 60,000 shares for $66.83, generating $4 million from the sale.
- Chief Executive Officer James E. Lillie sold 45,000 shares for $66.83, generating $3 million from the sale.
You can view the list of recent insider transactions for Jarden Corp. here.
|P/E: 42.95||Forward P/E: 15.35||Industry P/E: 25.81|
|P/S: 1.08||Price/Book: 3.35||EV/EBITDA: 14.11|
|Market Cap: $8.72B||Avg. Daily Volume: 938,832||52 Week Range: $54.25 – $68.96|
4. The Priceline Group Inc. (PCLN): $1151.46
Director Jeffery H. Boyd sold 11,500 shares of this online travel company for $1161.20, generating $13.35 million from the sale.
You can view the list of recent insider transactions for The Priceline Group Inc. here.
|P/E: 26.01||Forward P/E: 18.63||Industry P/E: 23.51|
|P/S: 7.42||Price/Book: 6.92||EV/EBITDA: 18.33|
|Market Cap: $60.29B||Avg. Daily Volume: 857,255||52 Week Range: $1017.28 – $1378.96|
5. JB Hunt Transport Services Inc. (JBHT): $81.48
Shares of this trucking company were sold by 3 insiders:
- Director Gary Charles George sold 125,000 shares for $80.89, generating $10.11 million from the sale. These shares were sold indirectly by Cl George & Sons Ltd.
- EVP and Chief Operations Officer Alfred C. Harper sold 14,000 shares for $80.69, generating $1.13 million from the sale.
- VP/Controller John Kuhlow sold 1,802 shares for $80.51, generating $145,079 from the sale.
You can view the list of recent insider transactions for JB Hunt Transport Services Inc. here.
|P/E: 27.16||Forward P/E: 22.38||Industry P/E: 27|
|P/S: 1.57||Price/Book: 8.18||EV/EBITDA: 11.68|
|Market Cap: $9.55B||Avg. Daily Volume: 974,052||52 Week Range: $69.33 – $82.75|
You can view the full list of sales from this Insider Sales page.
Voluntary Disclosure: I have a long position in Rackspace Hosting (RAX).
Connect with me on LinkedIn: http://www.linkedin.com/in/asifsuria