Insider Trading 25 September 2015: Sears Buying

September 28th, 2015
in contributors

by Asif Suria

Insider buying decreased last week with insiders buying $45.88 million of stock compared to $281.51 million in the week prior. Selling also declined with insiders selling $442.94 million of stock last week compared to $501.83 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 increased to 9.65. In other words, insiders sold almost 10 times as much stock as they purchased. The Sell/Buy ratio this week compares unfavorably with the prior week, when the ratio stood at 1.78.

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 September 25, 2015

Insider Sell Buy Ratio September 25, 2015

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. Sears Holdings Corporation (SHLD): $24.67

Chief Executive Officer Edward S. Lampert acquired 267,472 shares of this department stores chain, paying $24.97 per share for a total amount of $6.68 million. Mr. Lampert increased his stake by 0.91% to 29,531,152 shares with this purchase.

It was interesting to see Mr. Lampert also pick up $18 million worth of Land’s End (LE) last week. Land’s End was spun out of Sears last year and generated $500 million in proceeds for Sears in the form of a dividend from Land’s end.

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

P/E: N/A Forward P/E: N/A Industry P/E: 16.71
P/S: 0.1 Price/Book: N/A EV/EBITDA: -6.42
Market Cap: $2.63B Avg. Daily Volume: 1,016,030 52 Week Range: $19.08 – $48.25

 

2. Five Below, Inc. (FIVE): $34.31

Shares of this specialty value retailer were acquired by 2 insiders:

  • Director David M. Mussafer acquired 90,000 shares, paying $33.35 per share for a total amount of $3 million. These shares were purchased indirectly by Sunley House Capital Master Limited Partnership.
  • President and CEO Joel D. Anderson acquired 5,000 shares, paying $33.53 per share for a total amount of $167,650. Mr. Anderson increased his stake by 31.03% to 21,113 shares with this purchase.

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

P/E: 39.03 Forward P/E: 25.99 Industry P/E: 18.45
P/S: 2.48 Price/Book: 9.49 EV/EBITDA: 18.78
Market Cap: $1.87B Avg. Daily Volume: 1,021,430 52 Week Range: $28.51 – $47.89

 

3. Opko Health, Inc. (OPK): $9.08

CEO & Chairman Phillip Frost M.D. acquired 132,800 shares of this medical devices and drug development company, paying $9.79 per share for a total amount of $1.3 million. These shares were acquired 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: 181.6 Industry P/E: 24.71
P/S: 38.72 Price/Book: 5.46 EV/EBITDA: -43.41
Market Cap: $4.91B Avg. Daily Volume: 5,440,170 52 Week Range: $8.02 – $19.2

 

4. Intrepid Potash, Inc. (IPI): $5.95

Executive Chair, President & CEO Robert P. Jornayvaz acquired 130,688 shares of this agricultural chemicals company, paying $6.55 per share for a total amount of $856,201. These shares were purchased indirectly by Intrepid Production Corporation.

It is astounding to see just how much the fertilizer companies have fallen in concert with the big decline in commodity prices. Not only is Intrepid Potash close to its 52 week low, it is down more than 77% over the last five years. Trading at 5 times EBITDA, the stock appears to be cheap but with declining revenue and low single digit margins, the stock could very well be a value trap instead of a value opportunity.

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

P/E: 74.38 Forward P/E: 59.5 Industry P/E: 16.22
P/S: 1.34 Price/Book: 0.48 EV/EBITDA: 5.08
Market Cap: $453.21M Avg. Daily Volume: 816,855 52 Week Range: $5.4 – $15.69

 

5. HEICO Corporation (HEI): $47.69

Shares of this aerospace and defense products company were purchased by 8 insiders:

  • Co-President Victor H. Mendelson acquired 1,550 shares, paying $45.03 per share for a total amount of $69,797.
  • CEO and COB Laurans A. Mendelson acquired 1,550 shares, paying $45.03 per share for a total amount of $69,797.
  • Director Julie Neitzel acquired 1,550 shares, paying $45.03 per share for a total amount of $69,797. These shares were acquired indirectly by the HEICO Corporation Leadership Compensation Plan.
  • Director Frank J. Schwitter acquired 1,325 shares, paying $50.98 per share for a total amount of $67,549.
  • Director Samuel Higginbottom acquired 1,550 shares, paying $45.03 per share for a total amount of $69,797.
  • Director Alan Schriesheim acquired 1,325 shares, paying $50.98 per share for a total amount of $67,549. These shares were acquired indirectly by the HEICO Corporation Leadership Compensation Plan.
  • Director Mark H. Hildebrandt acquired 1,550 shares, paying $45.03 per share for a total amount of $69,797.
  • Director Adolfo Henriques acquired 1,550 shares, paying $45.03 per share for a total amount of $69,797. These shares were acquired indirectly by the HEICO Corporation Leadership Compensation Plan.

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

P/E: 25.37 Forward P/E: 22.18 Industry P/E: 17.95
P/S: 2.79 Price/Book: 4.14 EV/EBITDA: 12.87
Market Cap: $3.19B Avg. Daily Volume: 264,695 52 Week Range: $46.03 – $63.73

 

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

Notable Insider Sales:

1. Hawaiian Holdings Inc. (HA): $24.39

Director Zac Hirzel sold 394,418 shares of this airline company for $25.33, generating $9.99 million from the sale. These shares were sold indirectly by Hirzel Capital.

You can view the list of recent insider transactions for Hawaiian Holdings Inc. here.

P/E: 13.23 Forward P/E: 8.35 Industry P/E: 14.99
P/S: 0.55 Price/Book: 3.92 EV/EBITDA: 4.43
Market Cap: $1.34B Avg. Daily Volume: 1,098,380 52 Week Range: $12.52 – $27.66

 

2. Intercontinental Exchange, Inc. (ICE): $235

Shares of this financial services and brokerage company were sold by 2 insiders:

  • Chief Executive Officer Jeffrey C. Sprecher sold 38,000 shares for $226.65, generating $8.61 million from the sale. 30,000 of these shares were sold indirectly by Continental Power Exchange, Inc. and 7,000 shares were sold as a result of exercising options immediately prior to the sale.
  • General Counsel & Corporate Secretary Johnathan H. Short sold 2,986 shares for $226.72, generating $676,994 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 Intercontinental Exchange, Inc. here.

P/E: 24.28 Forward P/E: 17.04 Industry P/E: 10.25
P/S: 8.17 Price/Book: 2.03 EV/EBITDA: 14.59
Market Cap: $25.96B Avg. Daily Volume: 673,966 52 Week Range: $193.42 – $246.39

 

3. Cheniere Energy, Inc. (LNG): $48.5

Chairman, CEO & President Charif Souki sold 100,000 shares of this natural gas storage and pipeline company for $47.81, generating $4.78 million from the sale. These shares were sold indirectly through a trust.

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: 25.64
P/S: 40.89 Price/Book: N/A EV/EBITDA: -64.35
Market Cap: $11.47B Avg. Daily Volume: 4,100,900 52 Week Range: $46.23 – $82.32

 

4. Facebook, Inc. (FB): $92.77

VP Marketing & Business Partnerships David B. Fischer sold 50,000 shares of Facebook for $94.20, generating $4.71 million from the sale.

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

P/E: 94.28 Forward P/E: 33.73 Industry P/E: 29.94
P/S: 18.17 Price/Book: 6.7 EV/EBITDA: 39.98
Market Cap: $261.38B Avg. Daily Volume: 33,016,800 52 Week Range: $70.32 – $99.24

 

5. Douglas Emmett Inc (DEI): $29.31

Chairman of the Board Dan A. Emmett sold 140,000 shares of this apartment REIT for $29.75, generating $4.16 million from the sale. These shares were sold indirectly through a trust.

You can view the list of recent insider transactions for Douglas Emmett Inc here.

P/E: 88.28 Forward P/E: 17.24 Industry P/E: 12.74
P/S: 6.98 Price/Book: 2.22 EV/EBITDA: 21.59
Market Cap: $4.29B Avg. Daily Volume: 1,005,050 52 Week Range: $25.47 – $31.04

 

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

Connect with me on LinkedIn: http://www.linkedin.com/in/asifsuria or follow me on Twitter @asifsuria









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