Insider Trading 16 October 2015: Transactions Likely to be Muted Over the Coming Weeks Due to Beginning of Earnings Season

October 18th, 2015
in contributors

by Asif Suria

Insider buying declined again last week with insiders buying $24.71 million of stock compared to $55.32 million in the week prior. Selling also declined with insiders selling $295.56 million of stock last week compared to $489.91 million in the week prior. Insider transactions are likely to stay muted over the next week or two as we get into the thick of earnings season.

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 11.96. In other words, insiders sold almost 12 times as much stock as they purchased. The Sell/Buy ratio this week compares unfavorably with the prior week, when the ratio stood at 8.85.

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 16, 2015

Insider Sell Buy Ratio October 16, 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. Ryman Hospitality Properties, Inc. (RHP): $53.05

Chairman & CEO Colin V. Reed acquired 6,658 shares of this hotel operator, paying $53.04 per share for a total amount of $353,140. Mr. Reed increased his stake by 0.74% to 909,429 shares with this purchase.

With revenue per available room (RevPAR) at U.S. hotels at a 15 year high, it is no surprise that insiders of hotel REITs have been purchasing shares of their company. This increase is surprising given the rapid rise of Airbnb over the last few years and speaks volumes about the high demand for temporary accommodation.

RevPAR 2001 to 2015

RevPAR 2001 to 2015

You can view the list of recent insider transactions for Ryman Hospitality Properties, Inc. here.

P/E: 22.22 Forward P/E: 17.06 Industry P/E: 18.24
P/S: 2.55 Price/Book: 7.11 EV/EBITDA: 14.87
Market Cap: $2.69B Avg. Daily Volume: 278,426 52 Week Range: $45.22 – $64.97

 

2. Rovi Corporation (ROVI): $11.44

Director Glenn W. Welling acquired 22,270 shares of this multimedia company, paying $11.14 per share for a total amount of $248,088. These shares were purchased indirectly by Engaged Capital Master Feeder I, LP.

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

P/E: N/A Forward P/E: 5.53 Industry P/E: 63.53
P/S: 1.82 Price/Book: 0.91 EV/EBITDA: 10.84
Market Cap: $994.32M Avg. Daily Volume: 1,775,090 52 Week Range: $9.21 – $26.44

 

3. Opko Health, Inc. (OPK): $9.39

CEO & Chairman Phillip Frost M.D. acquired 20,000 shares of this medical devices and drug development company, paying $8.54 per share for a total amount of $170,866. 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: 156.5 Industry P/E: 23.81
P/S: 36.52 Price/Book: 5.15 EV/EBITDA: -43.27
Market Cap: $5.07B Avg. Daily Volume: 5,794,900 52 Week Range: $8.08 – $19.2

 

4. American DG Energy, Inc. (ADGE): $0.5655

Shares of this on-site energy systems provider were acquired by 7 insiders:

  • Co-Chief Executive Officer John Hatsopoulos acquired 183,313 shares, paying $0.44 per share for a total amount of $79,834. Mr. Hatsopoulos increased his stake by 24.42% to 933,913 shares with this purchase.
  • Director John W. Rowe acquired 58,123 shares, paying $0.44 per share for a total amount of $25,313. Mr. Rowe increased his stake by 72.11% to 138,723 shares with this purchase.
  • Director Elias Samaras acquired 37,973 shares, paying $0.47 per share for a total amount of $17,863. Mr. Samaras increased his stake by 1.71% to 2,261,692 shares with this purchase.
  • Director Joan Giacinti acquired 29,210 shares, paying $0.47 per share for a total amount of $13,741. Mr. Giacinti increased his stake by 106.21% to 56,712 shares with this purchase.
  • Director Charles Maxwell acquired 5,843 shares, paying $0.47 per share for a total amount of $2,749. Mr. Maxwell increased his stake by 0.50% to 1,165,681 shares with this purchase.
  • Director Deanna M. Petersen acquired 5,843 shares, paying $0.47 per share for a total amount of $2,749. Ms. Petersen increased her stake by 29.05% to 25,957 shares with this purchase.
  • Co-CEO Locke M. Benjamin acquired 2,920 shares, paying $0.47 per share for a total amount of $1,374. Mr. Benjamin increased his stake by 37.68% to 10,670 shares with this purchase.

You can view the list of recent insider transactions for American DG Energy, Inc. here.

P/E: N/A Forward P/E: N/A Industry P/E: 16.31
P/S: 3.31 Price/Book: 2.34 EV/EBITDA: -15.1
Market Cap: $28.66M Avg. Daily Volume: 29,912 52 Week Range: $0.26 – $0.98

 

5. CIM Commercial Trust Corporation (CMCT): $19.74

Shares of this commercial REIT were acquired by 4 insiders:

  • Director Richard S. Ressler acquired 1,923 shares, paying $19.49 per share for a total amount of $37,476. Mr. Ressler increased his stake by 27.52% to 8,911 shares with this purchase.
  • Director Avraham Shemesh acquired 1,018 shares, paying $19.49 per share for a total amount of $19,839. These shares were purchased indirectly through a trust.
  • Director Shaul Kuba acquired 1,017 shares, paying $19.49 per share for a total amount of $19,820. These shares were purchased indirectly through a trust.
  • Chief Executive Officer Charles E. Garner acquired 564 shares, paying $19.49 per share for a total amount of $10,992. Mr. Garner increased his stake by 15.80% to 4,134 shares with this purchase.

You can view the list of recent insider transactions for CIM Commercial Trust Corporation here.

P/E: 155.43 Forward P/E: N/A Industry P/E: 10.04
P/S: 7.32 Price/Book: 1.45 EV/EBITDA: 28.6
Market Cap: $1.93B Avg. Daily Volume: 14,688 52 Week Range: $14.31 – $21.55

 

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

Notable Insider Sales:

1. Costco Wholesale Corporation (COST): $152.06

Shares of this discount store chain were sold by 4 insiders:

  • Chairman of the Board Jeffrey H. Brotman sold 42,493 shares for $154.01, generating $6.54 million from the sale.
  • Executive VP Joseph P. Portera sold 10,000 shares for $152.75, generating $1.53 million from the sale.
  • Executive VP Dennis R. Zook sold 9,000 shares for $153.96, generating $1.39 million from the sale.
  • Executive Vice President John D. McKay sold 6,779 shares for $154.00, generating $1.04 million from the sale.

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

P/E: 28.32 Forward P/E: 24.29 Industry P/E: 26.7
P/S: 0.57 Price/Book: 6.26 EV/EBITDA: 13.8
Market Cap: $66.51B Avg. Daily Volume: 1,938,070 52 Week Range: $117.03 – $156.85

 

2. Capella Education Co. (CPLA): $52.44

Director Stephen G. Shank sold 135,071 shares of this for-profit education company for $52.57, generating $7.1 million from the sale. These shares were sold indirectly through a trust.

You can view the list of recent insider transactions for Capella Education Co. here.

P/E: 16.14 Forward P/E: 14.9 Industry P/E: 18.37
P/S: 1.48 Price/Book: 3.19 EV/EBITDA: 6.52
Market Cap: $632.80M Avg. Daily Volume: 123,255 52 Week Range: $46.25 – $77.86

 

3. Spark Therapeutics, Inc. (ONCE): $52.81

Shares of this biotech company were sold by 3 insiders:

  • Chief Executive Officer Jeffrey D. Marrazzo sold 75,000 shares for $48.35, generating $3.63 million from the sale.
  • President and Chief Scientific Officer Katherine A. High sold 40,000 shares for $49.01, generating $1.96 million from the sale.
  • Chief Commercial Officer Rogerio Coelho Vivaldi sold 24,000 shares for $48.15, generating $1.16 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 Spark Therapeutics, Inc. here.

P/E: N/A Forward P/E: N/A Industry P/E: N/A
P/S: 308.69 Price/Book: 6.27 EV/EBITDA: -26.89
Market Cap: $1.30B Avg. Daily Volume: 493,920 52 Week Range: $36.96 – $79.5

 

4. Apollo Global Management, LLC (APO): $18.57

Senior Managing Director Marc J. Rowan sold 360,101 shares of this investment manager for $18.63, generating $6.71 million from the sale. These shares were sold indirectly by MJR Foundation AC.

You can view the list of recent insider transactions for Apollo Global Management, LLC here.

P/E: 46.31 Forward P/E: 9.01 Industry P/E: 8.69
P/S: 2.89 Price/Book: 4.33 EV/EBITDA: N/A
Market Cap: $3.24B Avg. Daily Volume: 1,022,150 52 Week Range: $15.35 – $25.8

 

5. salesforce.com, inc. (CRM): $78.77

Shares of this software-as-a-service (SaaS) provider were sold by 3 insiders:

  • Chairman of the Board & CEO Marc Benioff sold 75,000 shares for $76.56, generating $5.74 million from the sale.
  • Co-Founder Parker Harris sold 5,000 shares for $77.13, generating $385,656 from the sale.These shares were sold as a result of exercising options immediately prior to the sale.
  • Director Craig Conway sold 400 shares for $76.19, generating $30,476 from the sale.

You can view the list of recent insider transactions for salesforce.com, inc. here.

P/E: N/A Forward P/E: 82.05 Industry P/E: 33.95
P/S: 8.58 Price/Book: 11.31 EV/EBITDA: 160.63
Market Cap: $51.64B Avg. Daily Volume: 3,941,700 52 Week Range: $53.44 – $78.84

 

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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