Insider Weekends – March 18, 2016

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March 20, 2016 | Insider Buying | | Author Asif

Welcome to edition 300 of Insider Weekends. Insider buying more than doubled last week with insiders buying $269.24 million of stock compared to $103.49 million in the week prior. Selling on the other hand decreased with insiders selling $1.33 billion of stock last week compared to $2.15 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 4.93. In other words, insiders sold almost 5 times as much stock as they purchased. The Sell/Buy ratio this week compares favorably with the prior week, when the ratio stood at 20.79. 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 March 18, 2016

Insider Sell Buy Ratio March 18, 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. Incyte Corporation (INCY): $65.07

Director Julian Baker acquired 800,000 shares of this drug discovery and development company, paying $63.98 per share for a total amount of $51.18 million. These shares were acquired indirectly through Baker Brothers Life Sciences Capital and other related entities.

You can view the list of recent insider transactions for Incyte Corporation here.

P/E: 2 Forward P/E: 51.24 Industry P/E: 26.02
P/S: 15.66 Price/Book: 68.76 EV/EBITDA: 195.89
Market Cap: $12.18B Avg. Daily Volume: 2,446,020 52 Week Range: $55 – $133.62

2. Seattle Genetics, Inc. (SGEN): $33.92

Director Felix Baker acquired 1,349,237 shares of this biotech company, paying $32.10 per share for a total amount of $43.31 million. These shares were purchased indirectly by Baker Bros. Advisors LP.

This is the fifth week in a row we have seen the Baker Bros add to their position and the total this week exceeds the purchases we saw in each of the prior four weeks.

You can view the list of recent insider transactions for Seattle Genetics, Inc. here.

P/E: N/A Forward P/E: N/A Industry P/E: 26.02
P/S: 13.71 Price/Book: 6.72 EV/EBITDA: -38.49
Market Cap: $4.75B Avg. Daily Volume: 1,359,660 52 Week Range: $26.02 – $52.33

3. OvaScience, Inc. (OVAS): $8.74

Chief Executive Officer Michelle Dipp acquired 221,761 shares of this biotech company, paying $7.68 per share for a total amount of $1.7 million. These shares were purchased indirectly by Longwood Fund III LP.

We normally tend to exclude purchases made by venture capital firms like Longwood but decided to make an exception in this case because Ms. Dipp is both the co-founder and partner of Longwood as well as the CEO and co-founder of OvaScience.

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

P/E: N/A Forward P/E: N/A Industry P/E: N/A
P/S: 779.01 Price/Book: 1.7 EV/EBITDA: -1.57
Market Cap: $238.60M Avg. Daily Volume: 486,634 52 Week Range: $4.53 – $55.69

4. Tempur Sealy International Inc. (TPX): $63.19

Shares of this bedding products company were acquired by 2 insiders:

  • CEO & President Scott L. Thompson acquired 35,000 shares, paying $57.67 per share for a total amount of $2.02 million. Mr. Thompson increased his stake by 50.23% to 104,686 shares with this purchase.
  • EVP & President North America Richard W. Anderson acquired 17,430 shares, paying $57.32 per share for a total amount of $999,091. Mr. Anderson increased his stake by 50.18% to 52,162 shares with this purchase.

You can view the list of recent insider transactions for Tempur Sealy International Inc. here.

P/E: 54.01 Forward P/E: 13.95 Industry P/E: 16.26
P/S: 1.23 Price/Book: 13.32 EV/EBITDA: 13.23
Market Cap: $3.94B Avg. Daily Volume: 1,319,000 52 Week Range: $50.8 – $82.61

5. Sarepta Therapeutics, Inc. (SRPT): $18

Shares of this biotech company were acquired by 3 insiders:

  • Director M. Kathleen Behrens acquired 75,000 shares, paying $16.28 per share for a total amount of $1.22 million. Ms. Behrens increased her stake by 201.80% to 112,166 shares with this purchase. 10,000 of these shares were purchased indirectly through a trust.
  • Director Richard Barry acquired 75,000 shares, paying $15.66 per share for a total amount of $1,174,185. Mr. Barry increased his stake by 2.37% to 3,241,014 shares with this purchase.
  • Director Ben Gil Price acquired 4,500 shares, paying $16.70 per share for a total amount of $75,144. Mr. Price increased his stake by 11.74% to 42,830 shares with this purchase.

You can view the list of recent insider transactions for Sarepta Therapeutics, Inc. here.

P/E: N/A Forward P/E: N/A Industry P/E: 26.02
P/S: 620.66 Price/Book: 4.08 EV/EBITDA: -3.18
Market Cap: $822.00M Avg. Daily Volume: 1,943,750 52 Week Range: $10.2 – $41.97

You can view the full list of purchases from this Insider Buying page.

Notable Insider Sales:

1. Workday, Inc. (WDAY): $72

Shares of this application software company were sold by 6 insiders:

  • Chairman David A. Duffield sold 350,000 shares for $70.29, generating $24.6 million from the sale. These shares were sold indirectly by The Dave & Cheryl Duffield Foundation.
  • Vice Chairman Michael A. Stankey sold 141,000 shares for $47.23, generating $6.66 million from the sale. 47,000 of these shares were sold as a result of exercising options immediately prior to the sale.
  • Co-President Philip W. Wilmington sold 34,275 shares for $70.43, generating $2.41 million from the sale.
  • Senior Vice President James Bozzini sold 12,500 shares for $71.02, generating $887,742 from the sale. These shares were sold as a result of exercising options immediately prior to the sale.
  • Co-President & CFO Mark S. Peek sold 8,817 shares for $72.31, generating $637,557 from the sale.
  • Director Michael M. McNamara sold 3,400 shares for $69.79, generating $237,286 from the sale. These shares were sold indirectly by Flextronics International USA, Inc. 2005 Senior Executive Deferred Compensation Plan.

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

P/E: N/A Forward P/E: 257.14 Industry P/E: 32.42
P/S: 11.62 Price/Book: 11.89 EV/EBITDA: -69.36
Market Cap: $13.82B Avg. Daily Volume: 2,710,000 52 Week Range: $47.32 – $93.62

2. Facebook, Inc. (FB): $111.45

Shares of Facebook were sold by 4 insiders:

  • Chief Operating Officer Sheryl Sandberg sold 109,000 shares for $111.46, generating $12.15 million from the sale. 52,504 of these shares were sold as a result of exercising options immediately prior to the sale.
  • Chief Product Officer Christopher K. Cox sold 21,534 shares for $109.78, generating $2.36 million from the sale.
  • Chief Technology Officer Michael Todd Schroepfer sold 20,000 shares for $109.13, generating $2.18 million from the sale. These shares were sold as a result of exercising options immediately prior to the sale.
  • VP and General Counsel Colin Stretch sold 1,000 shares for $109.13, generating $109,130 from the sale.

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

P/E: 86.19 Forward P/E: 26.99 Industry P/E: 30
P/S: 17.63 Price/Book: 7.12 EV/EBITDA: 36.3
Market Cap: $326.92B Avg. Daily Volume: 34,875,600 52 Week Range: $72 – $117.59

3. Reynolds American Inc. (RAI): $50.69

Shares of this cigarettes manufacturer were sold by 12 insiders:

  • EVP & Chief Financial Officer Andrew D. Gilchrist sold 49,180 shares for $51.19, generating $2.52 million from the sale.
  • EVP, Gen. Counsel & Asst. Sec Martin L. Holton sold 41,752 shares for $51.19, generating $2.14 million from the sale.
  • EVP of RJRTC Jeffery S. Gentry sold 35,855 shares for $51.19, generating $1.84 million from the sale.
  • EVP & Chief HR Officer Lisa J. Caldwell sold 33,499 shares for $51.19, generating $1.71 million from the sale. 2,007 of these shares were sold indirectly by Ms. Lisa’s spouse.
  • EVP – Public Affairs John Brice O’Brien sold 29,097 shares for $51.19, generating $1.49 million from the sale.
  • EVP – R&D of RJRT Daniel J. Herko sold 27,196 shares for $51.19, generating $1.39 million from the sale.
  • Executive Vice President Robert H. Dunham sold 22,262 shares for $51.19, generating $1.14 million from the sale.
  • SVP & Chief Accounting Officer Frederick W. Smothers sold 19,082 shares for $51.19, generating $976,786 from the sale.
  • SVP, Deputy GC & Secretary McDara Folan sold 17,498 shares for $51.19, generating $895,656 from the sale.
  • SVP & Treasurer Daniel A. Fawley sold 16,577 shares for $51.19, generating $848,531 from the sale.
  • EVP – Trade Marketing of RJRT Michael P. Auger sold 9,828 shares for $51.19, generating $503,067 from the sale.
  • EVP – Operations of RJRT Nancy H. Hawley sold 6,817 shares for $51.19, generating $348,938 from the sale.

You can view the list of recent insider transactions for Reynolds American Inc. here.

P/E: 19.72 Forward P/E: 19.42 Industry P/E: 21.83
P/S: 6.78 Price/Book: 3.96 EV/EBITDA: 20.6
Market Cap: $72.35B Avg. Daily Volume: 5,271,540 52 Week Range: $33.71 – $52.54

4. The Priceline Group Inc. (PCLN): $1344.22

Shares of this online travel company were sold by 3 insiders:

  • Chief Financial Officer Daniel J. Finnegan sold 5,871 shares for $1341.94, generating $7.88 million from the sale.
  • Executive VP, General Counsel Peter J. Millones sold 5,871 shares for $1321.38, generating $7.76 million from the sale.
  • President & COO, Booking.com Gillian Tans sold 130 shares for $1315.15, generating $170,970 from the sale.

You can view the list of recent insider transactions for The Priceline Group Inc. here.

P/E: 27.18 Forward P/E: 16.61 Industry P/E: 19.03
P/S: 7.24 Price/Book: 7.6 EV/EBITDA: 20.05
Market Cap: $66.70B Avg. Daily Volume: 731,987 52 Week Range: $954.02 – $1476.52

5. Activision Blizzard, Inc. (ATVI): $32.2

CEO, Activision Publishing Eric Hirshberg sold 287,847 shares of this multimedia & graphics software company for $32.47, generating $9.35 million from the sale. 120,858 of these shares were sold as a result of exercising options immediately prior to the sale.

You can view the list of recent insider transactions for Activision Blizzard, Inc. here.

P/E: 27.06 Forward P/E: 15.48 Industry P/E: 21.41
P/S: 5.12 Price/Book: 2.96 EV/EBITDA: 18.22
Market Cap: $23.67B Avg. Daily Volume: 10,418,000 52 Week Range: $22.28 – $39.93

You can view the full list of sales from this Insider Sales page.

Disclaimer Clients of Signal Partners, LLC  and I may have positions in any of these stocks at any time. Please do your own due diligence before buying or selling any securities mentioned in this article. We do not warrant the completeness or accuracy of the content or data provided in this article.

Connect with me on LinkedIn: http://www.linkedin.com/in/asifsuria or follow me on Twitter @asifsuria




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