Insider Weekends – Edition 318

Insider buying increased last week with insiders buying $29.17 million of stock compared to $6.38 million in the week prior. Selling also increased with insiders selling $757.96 million of stock last week compared to $578.34 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 decreased to 25.98. In other words, insiders sold  almost 26 times as much stock as they purchased. The Sell/Buy ratio this week compares favorably with the prior week, when the ratio stood at 90.65. 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 July 22, 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. Cheniere Energy, Inc. (LNG): $41.08

President and CEO Jack A. Fusco acquired 37,604 shares of this liquefied natural gas company, paying $39.89 per share for a total amount of $1.49 million. Mr. Fusco increased his stake by 14.00% to 306,180 shares with this purchase. 18,802 of these shares were purchased indirectly by Fusco Energy Investments, LLP.

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

P/E: -9.07 Forward P/E: 46.68 Industry P/E: 30.06
P/S: 34.09 Price/Book: N/A EV/EBITDA: -102.34
Market Cap: $9.68B Avg. Daily Volume: 2,512,630 52 Week Range: $22.8 – $71.11

2. Akamai Technologies, Inc. (AKAM): $57.89

Chief Executive Officer F Thomson Leighton acquired 17,456 shares of this content delivery and cloud infrastructure company, paying $57.28 per share for a total amount of $999,880. These shares were purchased indirectly through a trust.

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