posted on 10 April 2016
by Asif Suria
Insider buying increased significantly last week with insiders buying $119.62 million of stock compared to $26.94 million in the week prior. Selling on the other hand declined with insiders selling $906 million of stock last week compared to $1.32 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 dropped to 7.57. In other words, insiders sold more than 7 times as much stock as they purchased. The Sell/Buy ratio this week compares favorably with the prior week, when the ratio stood at 48.99. 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.
While the headline numbers indicate that insider buying jumped significantly and the Sell/Buy ratio dropped, looking deeper shows that 94% of the insider buying was related to a single transaction for Transmontaigne Partners (TLP) that appears to be a private placement with various entities indirectly related to a director of the company. Removing this transaction would mean insiders just purchased $7.2 million of stock last week. Some of this muted buying could be explained by the fact that we were in the first week of the quarter and earnings related quite periods at most companies.
Insider Sell Buy Ratio April 8, 2016
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. Actuant Corporation (ATU): $24.22
Shares of this industrial products and systems company were acquired by 3 insiders:
You can view the list of recent insider transactions for Actuant Corporation here.
2. Opko Health, Inc. (OPK): $10.73
CEO & Chairman Phillip Frost M.D. acquired 40,000 shares of this devices and drug development company, paying $10.45 per share for a total amount of $417,803. These shares were purchased indirectly by Frost Gamma Investments Trust.
You can view the list of recent insider transactions for Opko Health, Inc. here.
3. Ambac Financial Group, Inc. (AMBC): $15.15
Shares of this insurance company were acquired by 2 insiders:
You can view the list of recent insider transactions for Ambac Financial Group, Inc. here.
4. aTyr Pharma Inc. (LIFE): $3.2
Shares of this biotherapeutics company were acquired by 2 insiders:
You can view the list of recent insider transactions for aTyr Pharma Inc. here.
5. Engility Holdings, Inc. (EGL): $17.75
Chief Executive Officer Lynn A. Dugle acquired 13,656 shares of this staffing & consulting services provider, paying $18.30 per share for a total amount of $249,944.
You can view the list of recent insider transactions for Engility Holdings, Inc. here.
You can view the full list of purchases from this Insider Buying page.
Notable Insider Sales:
1. Facebook, Inc. (FB): $110.63
Shares of Facebook were sold by 4 insiders:
You can view the list of recent insider transactions for Facebook, Inc. here.
2. Six Flags Entertainment Corporation (SIX): $59.42
Exec. Chairman James Reid-Anderson sold 281,646 shares of this theme park operator for $57.77, generating $16.27 million from the sale.
You can view the list of recent insider transactions for Six Flags Entertainment Corporation here.
3. Palo Alto Networks, Inc. (PANW): $147.85
Shares of this network security company were sold by 4 insiders:
You can view the list of recent insider transactions for Palo Alto Networks, Inc. here.
4. Mylan N.V. (MYL): $47
Executive Chairman Robert J. Coury sold 217,755 shares of this pharmaceutical company for $45.96, generating $10 million from the sale.
You can view the list of recent insider transactions for Mylan N.V. here.
5. QVC Group (QVCA): $25.98
Shares of this online commerce company were sold by 2 insiders:
You can view the list of recent insider transactions for QVC Group here.
You can view the full list of sales from this Insider Sales page.
Disclaimer Clients of Signal Partners, LLC and I may have positions in any of these stocks at any time. Please do your own due diligence before buying or selling any securities mentioned in this article. We do not warrant the completeness or accuracy of the content or data provided in this article.
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