Insider Weekends – Edition 315

Insider buying decreased by half last week with insiders buying $53.24 million of stock compared to $124.52 million in the week prior. Selling increased with insiders selling $984.67 million of stock last week compared to $462.5 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 increased to 18.49. In other words, insiders sold  more than 18 times as much stock as they purchased. The Sell/Buy ratio this week compares unfavorably with the prior week, when the ratio stood at 3.71. 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 1, 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. Paratek Pharmaceuticals, Inc. (PRTK): $13.67

Shares of this biotech company were acquired by 2 insiders:

• Director Richard J. Lim acquired 461,538 shares, paying $13.00 per share for a total amount of $5.99 million. These shares were purchased indirectly through a fund.
• Chairman and CEO Michael Bigham acquired 20,000 shares, paying $13.45 per share for a total amount of $269,014. Mr. Bigham increased his stake by 25.00% to 100,000 shares with this purchase.

You can view the list of recent insider transactions for Paratek Pharmaceuticals, Inc. here.