Welcome to edition 191 of Insider Weekends. Insider buying decreased last week with insiders purchasing $51.82 million of their stock compared to $151.76 million in the week prior. Selling increased with insiders selling $1.68 billion of stock last week compared to $1.37 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 increased to 32.52. In other words, insiders sold more than 32 times as much stock as they purchased. The Sell/Buy ratio this week compares unfavorably with the prior week, when the ratio stood at 9.04. 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 February 14, 2014
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:
Some of the insider purchases that did not make the top 5 list but are worth exploring include a $1 million purchase of Bally Technologies (BYI) by its CEO, a cluster purchase by the insiders of Teradata (TDC) and a purchase by the CFO of Potlach (PCH).
1. El Paso Pipeline Partners, L.P. (EPB): $30.99
Chairman and CEO Richard D. Kinder acquired 100,000 shares of this natural gas pipeline company, paying $30.04 per share for a total amount of $3 million. Mr. Kinder increased his stake by 357.14% to 128,000 shares with this purchase.
You can view the list of recent insider transactions for El Paso Pipeline Partners, L.P. here.
| P/E: 16.64 | Forward P/E: 17.12 | Industry P/E: 35.13 |
| P/S: 4.47 | Price/Book: 3.47 | EV/EBITDA: 10.48 |
| Market Cap: $6.76B | Avg. Daily Volume: 973,568 | 52 Week Range: $29.83 – $44.99 |
2. Murphy Oil Corporation (MUR): $60.06
