Welcome to edition 207 of Insider Weekends. Insider buying more than quadrupled last week with insiders buying $115.81 million of stock compared to $26.37 million in the week prior. Selling on the other hand decreased with insiders selling $2.29 billion of stock last week compared to $3.04 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 19.77.In other words, insiders sold almost 20 times as much stock as they purchased. The Sell/Buy ratio this week compares favorably with the prior week, when the ratio stood at 115.19.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.
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. Kinder Morgan, Inc. (KMI): $35.08
Director Fayez Sarofim acquired 400,000 shares of this oil & gas pipelines company, paying $33.82 per share for a total amount of $13.53 million. Mr. Sarofim increased his stake by 1.79% to 22,789,655 shares with this purchase.
Mr. Sarofim’s purchase makes him the fifth insider of Kinder Morgan to purchase shares this year. The size of his purchase eclipsed Chairman Richard Kinder’s nearly $10 million purchase in February. There have been no insider sales at the company since 2012.
You can view the list of recent insider transactions for Kinder Morgan, Inc. here.
| P/E: 30.69 | Forward P/E: 23.54 | Industry P/E: 37.2 |
| P/S: 2.36 | Price/Book: 2.78 | EV/EBITDA: 11.82 |
| Market Cap: $36.06B | Avg. Daily Volume: 5,892,020 | 52 Week Range: $30.81 – $40.45 |
2. The Fresh Market, Inc. (TFM): $33.43
Director Ray D. Berry acquired 435,000 shares of this grocery store chain, paying $30.47 per share for a total amount of $13.25 million. These shares were purchased indirectly through a trust.
