Welcome to edition 261 of Insider Weekends. Insider buying dropped sharply last week with insiders buying $43.68 million of stock compared to $106.45 million in the week prior. Selling also declined with insiders selling $953.04 million of stock last week compared to $2.37 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 21.82. In other words, insiders sold almost 22 times as much stock as they purchased. The Sell/Buy ratio this week compares favorably with the prior week, when the ratio stood at 22.26. 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.
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Insider Sell Buy Ratio June 19, 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. Valeant Pharmaceuticals International, Inc. (VRX): $228.22
Executive Vice President Robert L. Rosiello acquired 12,900 shares of this Canadian pharmaceutical company, paying $232.51 per share for a total amount of $2.99 million.
You can view the list of recent insider transactions for Valeant Pharmaceuticals International, Inc. here.
| P/E: 77.84 | Forward P/E: N/A | Industry P/E: 22.23 |
| P/S: 9.36 | Price/Book: 12.41 | EV/EBITDA: 25.15 |
| Market Cap: $78.16B | Avg. Daily Volume: 1,674,960 | 52 Week Range: $106 – $246.01 |
LUB
2. Luby’s, Inc. (LUB): $5.05
President and CEO Christopher James Pappas acquired 125,000 shares of this restaurant chain, paying $5.13 per share for a total amount of $641,649. Mr. Pappas increased his stake by 3.33% to 3,880,757 shares with this purchase.
Mr. Pappas has acquired shares several times this year even as the stock has continued to edge up. The company had 94 LUB Luby’s Cafeterias, 72 Fuddruckers, 8 Cheeseburger in Paradise and 1 Bob Luby’s Seafood restaurant at the end of fiscal Q3 2015 ended May 6, 2015. The business has been in transition for a while as Luby’s has been shutting down Cheeseburger in Paradise restaurants and investing in “combo†locations that include side-by-side a Luby’s Cafeteria and a Fuddruckers.
