Welcome to edition 247 of Insider Weekends. Insider buying increased last week with insiders buying $73.39 million of stock compared to $70.86 million in the week prior. Selling on the other hand decreased with insiders selling $1.24 billion of stock last week compared to $1.77 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 16.89. In other words, insiders sold almost 17 times as much stock as they purchased. The Sell/Buy ratio this week compares favorably with the prior week, when the ratio stood at 24.99. 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.
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Insider Sell Buy Ratio March 13, 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. American Homes 4 Rent (AMH): $16.37
Director B. Wayne Hughes acquired 1,000,000 shares of this single-family home rental REIT, paying $16.24 per share for a total amount of $16.24 million. These shares were purchased indirectly through a trust.
The last time we mentioned a purchase of AMH by Mr. Hughes was on December 19, 2014 after he picked up a million shares of the company at an average price of $16.99. As we mentioned back then, Mr. Hughes is the billionaire founder of Public Storage (PSA) and retired as the CEO of PSA in 2012. He founded the former manager of American Homes 4 Rent in 2011.
You can view the list of recent insider transactions for American Homes 4 Rent here.
| P/E: N/A | Forward P/E: 16.7 | Industry P/E: N/A |
| P/S: 8.64 | Price/Book: 1 | EV/EBITDA: 34.44 |
| Market Cap: $3.46B | Avg. Daily Volume: 887,920 | 52 Week Range: $15.76 – $18.85 |
2. American Assets Trust, Inc. (AAT): $41.94
Executive Chairman Ernest S. Rady acquired 200,000 shares of this diversified REIT, paying $40.54 per share for a total amount of $8.11 million. These shares were purchased indirectly by Explorer Insurance Company which is directly controlled by the Reporting Person.
