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Insider Weekends April 29, 2016

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April 30, 2016 | Insider Buying | Author Asif

Welcome to edition 306 of Insider Weekends. Insider buying increased significantly last week with insiders buying $120.89 million of stock compared to $8.03 million in the week prior. Selling was flat with insiders selling $596.16 million of stock last week compared to $596.17 million in the week prior.

Over 85% of the insider buying this week was driven by a cluster of insider purchases in United Continental Holdings (UAL) as discussed below.

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 74.28. 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 April 29, 2016

Insider Sell Buy Ratio April 29, 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. United Continental Holdings, Inc. (UAL): $45.81

Shares of this airline were acquired by 12 insiders:

  • Director Edward Shapiro acquired 1,905,000 shares, paying $52.10 per share for a total amount of $99.25 million. These shares were purchased indirectly by PAR Investment Partners.
  • Director Barney Harford acquired 60,000 shares, paying $49.06 per share for a total amount of $2.94 million.
  • Director James M. Whitehurst acquired 10,000 shares, paying $49.23 per share for a total amount of $492,255.
  • EVP and General Counsel Brett J. Hart acquired 5,000 shares, paying $49.09 per share for a total amount of $245,440. Mr. Hart increased his stake by 9.16% to 59,579 shares with this purchase.
  • SVP- Finance & Acting CFO Gerald Laderman acquired 5,000 shares, paying $48.78 per share for a total amount of $243,905. Mr. Laderman increased his stake by 13.98% to 40,774 shares with this purchase.
  • EVP & COO Gregory L. Hart acquired 2,000 shares, paying $49.90 per share for a total amount of $99,795. Mr. Hart increased his stake by 5.80% to 36,466 shares with this purchase.
  • EVP HR and Labor Relations Michael P. Bonds acquired 2,000 shares, paying $48.38 per share for a total amount of $96,766. Mr. Bonds increased his stake by 3.93% to 52,865 shares with this purchase.
  • Director James A. Kennedy acquired 2,000 shares, paying $49.90 per share for a total amount of $99,800. Mr. Kennedy increased his stake by 222.22% to 2,900 shares with this purchase.
  • Director Robert A. Milton acquired 1,000 shares, paying $49.14 per share for a total amount of $49,140.

These purchases follow the $1 million purchase by the CEO Oscar Munoz that we reported on last week. Mr. Munoz is back from a medical leave as a result of a heart attack less than two months after he took the CEO job last year. It appears that he is well liked within the company as seen by the picketing by 30 pilots in front of the offices of the investment manager PAR Capital Management to support their CEO and his vision to turn around the company.

United Continental is certainly in need of significant turning around as discussed in the Bloomberg Businessweek article United’s Quest To Be Less Awful. While the stock is up over 78% over the last five years, it significantly trails its peers as seen in the chart below. Over the last year, the stock is down 25% even as the favorable tail winds of low oil prices, a growing economy and additional revenue from fees have helped the entire airline industry enjoy a new golden age. The stock is cheap but unloved. So are many other old guard companies like General Motors (GM) and IBM that offer respectable dividends while their investors wait to see if they turn around.

United Continental's 5 Year Stock Chart

United Continental's 5 Year Stock Chart (click to enlarge)

You can view the list of recent insider transactions for United Continental Holdings, Inc. here.

P/E: 2.35 Forward P/E: 5.35 Industry P/E: 8.41
P/S: 0.46 Price/Book: 1.95 EV/EBITDA: 3.19
Market Cap: $15.43B Avg. Daily Volume: 5,601,730 52 Week Range: $42.17 – $63.9

2. Caterpillar Inc. (CAT): $77.72

Director David L. Calhoun acquired 25,000 shares of this heavy equipment manufacturer, paying $77.44 per share for a total amount of $1.94 million. Mr. Calhoun increased his stake by 307.54% to 33,129 shares with this purchase.

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

P/E: 22.21 Forward P/E: 21.83 Industry P/E: 22.48
P/S: 0.96 Price/Book: 3.06 EV/EBITDA: 10.74
Market Cap: $45.38B Avg. Daily Volume: 6,251,860 52 Week Range: $56.36 – $89.62

3. Mylan N.V. (MYL): $41.71

Director Melina E. Higgins acquired 35,000 shares of this pharmaceutical company, paying $42.92 per share for a total amount of $1.5 million. These shares were purchased indirectly by Ms. Higgins’s husband.

You can view the list of recent insider transactions for Mylan N.V. here.

P/E: 24.54 Forward P/E: 7.15 Industry P/E: 25.34
P/S: 2.22 Price/Book: 2.14 EV/EBITDA: 9.36
Market Cap: $20.47B Avg. Daily Volume: 5,937,620 52 Week Range: $37.59 – $74.66

4. Performance Sports Group Ltd. (PSG): $3.71

Shares of this sports equipment company were acquired by 2 insiders:

  • Director Daniel M. Friedberg acquired 171,311 shares, paying $3.71 per share for a total amount of $635,102. These shares were purchased indirectly through Sagard Capital Partners, L.P.
  • Executive Vice President / CFO Mark J. Vendetti acquired 20,000 shares, paying $3.60 per share for a total amount of $72,034.

You can view the list of recent insider transactions for Performance Sports Group Ltd. here.

P/E: N/A Forward P/E: 11.97 Industry P/E: N/A
P/S: 0.26 Price/Book: 0.54 EV/EBITDA: 11.24
Market Cap: $169.05M Avg. Daily Volume: 1,407,350 52 Week Range: $2.8 – $21.72

5. Acacia Research Corporation (ACTG): $4.82

Shares of this patent portfolio company were acquired by 3 insiders:

  • Chief Executive Officer Marvin E. Key acquired 55,000 shares, paying $4.15 per share for a total amount of $228,058. Mr. Key increased his stake by 40.49% to 190,833 shares with this purchase.
  • Director Frank E. Walsh III acquired 35,000 shares, paying $4.13 per share for a total amount of $144,550.
  • Director G. Louis Graziadio acquired 10,000 shares, paying $4.44 per share for a total amount of $44,371. Mr. Graziadio increased his stake by 5.88% to 179,931 shares with this purchase.

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

P/E: N/A Forward P/E: 8.31 Industry P/E: 19.85
P/S: 1.83 Price/Book: 0.73 EV/EBITDA: 16.88
Market Cap: $243.21M Avg. Daily Volume: 783,257 52 Week Range: $2.82 – $10.86

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

Notable Insider Sales:

1. Fortune Brands Home & Security, Inc. (FBHS): $55.41

Shares of this home and security products company were sold by 2 insiders:

  • Chief Executive Officer Christopher J. Klein sold 390,000 shares for $57.22, generating $22.32 million from the sale. 230,000 of these shares were sold as a result of exercising options immediately prior to the sale.
  • President MasterBrand Cabinets David Randich sold 29,591 shares for $57.17, generating $1.69 million from the sale.

You can view the list of recent insider transactions for Fortune Brands Home & Security, Inc. here.

P/E: 28.64 Forward P/E: 18.35 Industry P/E: 16.08
P/S: 1.94 Price/Book: 3.67 EV/EBITDA: 15.09
Market Cap: $8.45B Avg. Daily Volume: 1,514,980 52 Week Range: $41.17 – $59.98

2. Lockheed Martin Corporation (LMT): $232.38

Shares of this defense company were sold by 2 insiders:

  • Chairman, Pres. & CEO Marillyn A. Hewson sold 25,000 shares for $233.16, generating $5.83 million from the sale.
  • SVP & General Counsel Maryanne Lavan sold 21,720 shares for $233.19, generating $5.06 million from the sale. 14,720 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 Lockheed Martin Corporation here.

P/E: 20.28 Forward P/E: 16.88 Industry P/E: 19.68
P/S: 1.53 Price/Book: 22.77 EV/EBITDA: 13.46
Market Cap: $70.41B Avg. Daily Volume: 1,279,250 52 Week Range: $181.91 – $234.59

3. QVC Group (QVCA): $26.2

Director Mark C. Vadon sold 366,000 shares of this online commerce company for $26.73, generating $9.78 million from the sale. These shares were sold indirectly by Lake Tana LLC.

You can view the list of recent insider transactions for QVC Group here.

P/E: 13.88 Forward P/E: 16.38 Industry P/E: 52.55
P/S: N/A Price/Book: 1.8 EV/EBITDA: N/A
Market Cap: $12.25B Avg. Daily Volume: 2,163,030 52 Week Range: $22.51 – $31.62

4. Wells Fargo & Company (WFC): $49.98

Shares of this bank were sold by 3 insiders:

  • Senior Exec. Vice President David M. Carroll sold 62,300 shares for $50.28, generating $3.13 million from the sale. These shares were sold indirectly through a trust.
  • Sr. Executive Vice President Avid Modjtabai sold 55,000 shares for $50.77, generating $2.79 million from the sale. These shares were sold indirectly through a trust.
  • Sr. Executive Vice President James M. Strother sold 40,000 shares for $50.77, generating $2.03 million from the sale.

You can view the list of recent insider transactions for Wells Fargo & Company here.

P/E: 12.13 Forward P/E: 11.33 Industry P/E: 11.25
P/S: 3.06 Price/Book: 1.49 EV/EBITDA: N/A
Market Cap: $252.76B Avg. Daily Volume: 19,860,300 52 Week Range: $44.5 – $58.77

5. Philip Morris International, Inc. (PM): $98.12

Shares of this cigarettes company were sold by 2 insiders:

  • Director Louis C. Camilleri sold 33,340 shares for $96.95, generating $3.23 million from the sale.
  • Sr. VP & General Counsel Marc S. Firestone sold 18,000 shares for $97.06, generating $1.75 million from the sale.

You can view the list of recent insider transactions for Philip Morris International, Inc. here.

P/E: 22.2 Forward P/E: 20.19 Industry P/E: 22.01
P/S: 5.63 Price/Book: N/A EV/EBITDA: 15.37
Market Cap: $152.21B Avg. Daily Volume: 4,703,400 52 Week Range: $76.54 – $102

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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Merger Arbitrage Mondays – April 25, 2016

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April 24, 2016 | Merger Arbitrage | Author Asif

Merger activity increased last week with three new deals announced and one deal closing.

You can find all the active deals listed below in our Merger Arbitrage Tool that automatically updates itself during market hours.

Deal Statistics:

Total Number of Deals Closed in 2016 65
Total Number of Deals Not Completed in 2016 3
Total Number of Pending Deals
Cash Deals 43
Stock Deals 17
Stock & Cash Deals 19
Special Conditions 6
Total Number of Pending Deals 85
Total Deal Size $789.87 billion

New Deals:

  1. The acquisition of Cvent (CVT) by affiliates of Vista Equity Partners for $1.65 billion or $36.00 per share in cash.
  2. The acquisition of Lexmark International (LXK) by a consortium of investors led by Apex Technology and PAG Asia Capital for $3.6 billion or $40.50 per share in cash.
  3. The acquisition of Hansen Medical (HNSN) by Auris Surgical Robotics for $80 million or $4.00 per share in cash.

Deal Updates:

  1. On April 19, 2016, Great Western Bancorp (GWB) and HF Financial (HFFC) announced that the merger of HF Financial into Great Western is expected to close on or about May 13, 2016.
  2. On April 22, 2016, The ADT Corporation (ADT) announced that its stockholders approved the acquisition of ADT by an affiliate of certain funds managed by affiliates of Apollo Global Management (APO) at its special meeting of stockholders held today.  Subject to the satisfaction of the remaining customary closing conditions, ADT expects the transaction to close on May 2, 2016.

Closed Deals:

  1. The acquisition of API Technologies (ATNY) by an affiliate of private equity firm J. F. Lehman & Company on April 22, 2016. It took 53 days for this deal to be completed.

Top 10 deals with largest spreads:

Symbol Announced

Date

Acquiring

Company

Closing

Price

Last

Price

Closing

Date

Profit Annualized

Profit

WMB 09/28/2015 Energy Transfer Equity, L.P. (ETE) $43.50 $19.54 06/30/2016 122.62% 678.13%
ODP 02/04/2015 Staples, Inc. (SPLS) $9.55 $6.205 05/16/2016 53.87% 936.25%
BHI 11/16/2014 Halliburton Company (HAL) $64.74 $46.43 04/30/2016 39.44% 2878.93%
APOL 02/08/2016 A consortium of investors including The Vistria Group, LLC, funds affiliated with Apollo Global Management, LLC and and Najafi Companies (N/A) $9.50 $7.27 12/31/2016 30.67% 44.78%
ALR 02/01/2016 Abbott Laboratories (ABT) $56.00 $43.36 12/31/2016 29.15% 42.56%
CI 07/24/2015 Anthem, Inc. (ANTM) $179.40 $141.82 12/31/2016 26.50% 38.69%
HUM 07/03/2015 Aetna Inc. (AET) $221.16 $175.30 12/31/2016 26.16% 38.20%
NKA 06/14/2015 Brookfield Infrastructure (N/A) $4.23 $3.68 12/31/2016 14.95% 21.82%
RAD 10/27/2015 Walgreens Boots Alliance, Inc. (WBA) $9.00 $8.04 12/31/2016 11.94% 17.43%
IM 02/17/2016 Tianjin Tianhai Investment Company, Ltd. (N/A) $38.90 $35.02 12/31/2016 11.08% 16.18%

List of all pending deals:

Symbol Announced

Date

Acquiring

Company

Deal

Type

Closing

Value

Closing

Price

Last

Price

Volume Closing

Date

Profit Annu.

Profit

+ WMB 09/28/2015 Energy Transfer Equity, L.P. (ETE) Special Conditions $37.7 billion $43.50 $19.54 10,057,391 06/30/2016 122.62% 678.13%
+ ODP 02/04/2015 Staples, Inc. (SPLS) Cash Plus Stock $6.3 billion $9.55 $6.205 10,349,642 05/16/2016 53.87% 936.25%
+ BHI 11/16/2014 Halliburton Company (HAL) Cash Plus Stock N/A $64.74 $46.43 4,476,870 04/30/2016 39.44% 2878.93%
+ APOL 02/08/2016 A consortium of investors including The Vistria Group, LLC, funds affiliated with Apollo Global Management, LLC and and Najafi Companies (N/A) All Cash $1.1 billion $9.50 $7.27 899,271 12/31/2016 30.67% 44.78%
+ ALR 02/01/2016 Abbott Laboratories (ABT) All Cash $5.8 billion $56.00 $43.36 3,314,933 12/31/2016 29.15% 42.56%
+ CI 07/24/2015 Anthem, Inc. (ANTM) Cash Plus Stock $54.2 billion $179.40 $141.82 572,629 12/31/2016 26.50% 38.69%
+ HUM 07/03/2015 Aetna Inc. (AET) Cash Plus Stock $37 billion $221.16 $175.30 560,142 12/31/2016 26.16% 38.20%
+ NKA 06/14/2015 Brookfield Infrastructure (N/A) All Cash $911.9 million $4.23 $3.68 19,322 12/31/2016 14.95% 21.82%
+ RAD 10/27/2015 Walgreens Boots Alliance, Inc. (WBA) All Cash $17.2 billion $9.00 $8.04 5,447,089 12/31/2016 11.94% 17.43%
+ IM 02/17/2016 Tianjin Tianhai Investment Company, Ltd. (N/A) All Cash $6 billion $38.90 $35.02 1,737,561 12/31/2016 11.08% 16.18%
+ BXLT 01/11/2016 Shire plc (SHPG) Cash Plus Stock $32 billion $45.44 $41.38 3,905,569 06/30/2016 9.81% 54.25%
+ HTCH 11/02/2015 TDK Corporation (N/A) Special Conditions $126 million $4.00 $3.67 249,678 06/30/2016 8.99% 49.73%
+ KUTV 04/05/2016 Shanda Investment Holdings Limited (N/A) All Cash N/A $1.08 $1.01 65,562 12/31/2016 6.93% 10.12%
+ LXK 04/19/2016 consortium of investors led by Apex Technology Co., Ltd. (Apex) and PAG Asia Capital (PAG) (N/A) All Cash $3.6 billion $40.50 $37.95 3,103,273 12/31/2016 6.72% 9.81%
+ TYC 01/25/2016 Johnson Controls Inc. (JCI) All Stock $16.5 billion $41.72 $39.19 3,514,220 09/30/2016 6.46% 14.92%
+ ITC 02/09/2016 Fortis Inc. (FTS.TO) Cash Plus Stock $11.3 billion $45.61 $42.92 1,231,746 12/31/2016 6.27% 9.15%
+ VAL 03/20/2016 The Sherwin-Williams Company (SHW) All Cash $11.3 billion $113.00 $106.78 666,109 03/31/2017 5.83% 6.25%
+ NPD 03/16/2016 China Neptunus Drugstore Holding Ltd. and Neptunus Global Limited (N/A) All Cash $258.66 million $2.62 $2.48 164,638 09/30/2016 5.65% 13.04%
+ MY 02/03/2016 A consortium of investors (the Buyer Consortium), including Mr. Chuanwei Zhang, the Chairman and Chief Executive Officer of the Company (N/A) All Cash $408 million $2.51 $2.39 773,602 06/30/2016 5.02% 27.77%
+ HE 12/03/2014 NextEra Energy, Inc. (NEE) Special Conditions $4.3 billion $33.50 $31.99 235,677 06/30/2016 4.72% 26.10%
+ CBNK 04/04/2016 Westfield Financial Inc. (WFD) All Stock $110 million $18.77 $18.06 2,343 12/31/2016 3.93% 5.74%
+ CVC 09/17/2015 Altice (N/A) All Cash $17.7 billion $34.90 $33.63 2,679,638 06/30/2016 3.78% 20.88%
+ MTSN 12/01/2015 Beijing E-Town Dragon Semiconductor Industry Investment Center (N/A) All Cash $300 million $3.80 $3.67 98,075 06/30/2016 3.54% 19.59%
+ AMTG 02/26/2016 Apollo Commercial Real Estate Finance, Inc. (ARI) Cash Plus Stock $641 million $14.08 $13.61 256,693 08/15/2016 3.43% 11.18%
+ SNDK 10/21/2015 Western Digital Corporation (WDC) Cash Plus Stock $19 billion $77.92 $75.49 3,197,469 06/30/2016 3.22% 17.81%
+ TWC 05/26/2015 Charter Communications, Inc. (CHTR) Cash Plus Stock $78.7 billion $207.05 $201.45 3,242,601 06/30/2016 2.78% 15.37%
+ WIBC 12/07/2015 BBCN Bancorp, Inc. (BBCN) All Stock $1 billion $11.37 $11.06 376,909 06/30/2016 2.78% 15.35%
+ VBIV 10/26/2015 SciVac Therapeutics Inc. (SVACF) All Stock N/A $2.48 $2.41 47,517 04/30/2016 2.75% 200.51%
+ AF 10/29/2015 New York Community Bancorp Inc. (NYCB) Cash Plus Stock $2 billion $15.77 $15.35 385,833 12/31/2016 2.74% 3.99%
+ VA 04/04/2016 Alaska Air Group, Inc. (ALK) All Cash $4 billion $57.00 $55.71 388,186 01/01/2017 2.32% 3.37%
+ FCTY 03/10/2016 Midland Financial Co. (N/A) All Cash N/A $11.22 $10.97 1,114 12/31/2016 2.28% 3.33%
+ IHS 03/21/2016 Markit Ltd. (MRKT) All Stock N/A $125.62 $123.01 141,105 12/31/2016 2.12% 3.10%
+ FGL 11/09/2015 Anbang Insurance Group Co., Ltd. (N/A) All Cash N/A $26.80 $26.26 439,876 06/30/2016 2.06% 11.37%
+ CVT 04/18/2016 affiliates of Vista Equity Partners (N/A) All Cash $1.65 billion $36.00 $35.30 1,681,473 09/30/2016 1.98% 4.58%
+ MNRK 12/17/2015 Towne Bank (TOWN) All Stock $221 million $18.32 $18.00 42,919 06/30/2016 1.79% 9.90%
+ EDE 02/09/2016 Algonquin Power & Utilities Corp. (AQN.TO) All Cash $2.4 billion $34.00 $33.46 381,045 03/31/2017 1.61% 1.73%
+ FNFG 10/30/2015 KeyCorp. (KEY) Cash Plus Stock $4.1 billion $10.85 $10.70 1,941,933 09/30/2016 1.44% 3.33%
+ GAS 08/24/2015 Southern Company (SO) All Cash $12 billion $66.00 $65.08 820,714 12/31/2016 1.41% 2.06%
+ PNX 09/29/2015 Nassau Reinsurance Group Holdings L.P. (N/A) All Cash $217.2 million $37.50 $36.99 6,454 06/30/2016 1.38% 7.62%
+ RRM 02/26/2016 SES (N/A) All Cash $242 million $13.29 $13.11 249 08/15/2016 1.37% 4.47%
+ FMER 01/26/2016 Huntington Bancshares Incorporated (HBAN) Cash Plus Stock $3.4 billion $22.63 $22.34 1,631,642 09/30/2016 1.30% 3.00%
+ RSTI 03/16/2016 Coherent Inc. (COHR) All Cash $942 million $32.50 $32.10 329,256 12/31/2016 1.25% 1.82%
+ PLCM 04/15/2016 Mitel Networks Corporation (MITL) Cash Plus Stock $1.96 billlion $12.39 $12.25 2,256,680 09/30/2016 1.18% 2.73%
+ DSKY 12/31/2015 Dream Investment Holdings Limited (N/A) All Cash N/A $14.00 $13.85 40,122 06/30/2016 1.08% 5.99%
+ DATE 12/07/2015 FutureWorld Inc. (N/A) All Cash N/A $7.56 $7.49 25,806 04/30/2016 0.93% 68.22%
+ BNK 11/09/2015 Bank of the Ozarks, Inc. (OZRK) Special Conditions $402.5 million $25.00 $24.80 27,694 04/30/2016 0.81% 58.87%
+ ARG 11/17/2015 Air Liquide (N/A) All Cash $13.4 billion $143.00 $141.86 1,045,791 08/15/2016 0.80% 2.62%
+ HOT 11/16/2015 Marriott International, Inc. (MAR) Special Conditions $13.6 billion $79.53 $79.01 4,138,062 06/30/2016 0.66% 3.64%
+ FSYS 09/01/2015 Westport Innovations Inc. (WPRT) All Stock $126.36 million $5.34 $5.31 34,172 03/31/2016 0.64% 0.00%
+ KLAC 10/21/2015 Lam Research Corporation (LRCX) Cash Plus Stock $10.6 billion $72.33 $71.90 735,746 06/30/2016 0.59% 3.27%
+ ADT 02/16/2016 An Affiliate of Certain Funds Managed By Affiliates of Apollo Global Management, LLC (N/A) All Cash $6.94 billion $42.00 $41.79 2,595,481 05/02/2016 0.50% 26.20%
+ PNY 10/26/2015 Duke Energy Corporation (DUK) All Cash $6.7 billion $60.00 $59.70 711,054 12/31/2016 0.50% 0.73%
+ AVNU 01/29/2016 Pinnacle Financial Partners Inc. (PNFP) Cash Plus Stock $201.4 million $20.36 $20.26 9,959 09/15/2016 0.49% 1.26%
+ NTI 12/21/2015 Western Refining, Inc. (WNR) Cash Plus Stock N/A $23.40 $23.33 964,597 06/30/2016 0.30% 1.65%
+ VSCP 03/25/2016 BioTelemetry, Inc. (BEAT) All Cash $15.5 million $4.05 $4.04 19,298 05/31/2016 0.25% 2.51%
+ TUMI 03/03/2016 Samsonite International S.A. (N/A) All Cash $1.8 billion $26.75 $26.69 391,467 06/30/2016 0.22% 1.24%
+ CHEV 11/24/2015 MainSource Financial Group, Inc. (MSFG) All Stock $107.4 million $14.95 $14.92 25,666 09/30/2016 0.22% 0.50%
+ PULB 12/03/2015 First Busey Corporation (BUSE) All Stock $210.7 million $16.54 $16.51 33,783 06/30/2016 0.20% 1.09%
+ CKP 03/02/2016 an affiliate of CCL Industries Inc. (N/A) All Cash $443 million $10.15 $10.13 196,435 09/30/2016 0.20% 0.46%
+ FCS 11/18/2015 ON Semiconductor Corp. (ON) All Cash $2.4 billion $20.00 $19.98 490,747 04/28/2016 0.10% 12.18%
+ SLI 04/07/2016 Handy & Harman Ltd. (HNH) All Cash $166.32 million $40.00 $39.98 7,587 06/30/2016 0.05% 0.28%
+ CBNJ 01/05/2016 OceanFirst Financial Corp. (OCFC) Cash Plus Stock $208.1 million $13.99 $13.98 23,404 09/30/2016 0.05% 0.11%
+ NTLS 08/10/2015 Shenandoah Telecommunications Co. (SHEN) All Cash $640 million $9.25 $9.25 51,197 04/30/2016 0.00% 0.00%
+ HFFC 11/30/2015 Great Western Bancorp. Inc. (GWB) All Stock $139.5 million $19.41 $19.41 73,555 05/13/2016 -0.01% -0.10%
+ RKUS 04/04/2016 Brocade Communications Systems, Inc. (BRCD) Cash Plus Stock $1.2 billion $13.72 $13.72 1,277,754 07/31/2016 -0.02% -0.07%
+ TFM 03/14/2016 Apollo Global Management, LLC (APO) All Cash $1.36 billion $28.50 $28.51 1,110,686 06/30/2016 -0.04% -0.19%
+ STR 02/01/2016 Dominion Resources, Inc. (D) All Cash $4.4 billion $25.00 $25.01 982,486 12/15/2016 -0.04% -0.06%
+ NEWP 02/23/2016 MKS Instruments, Inc. (MKSI) All Cash $980 million $23.00 $23.02 350,400 06/30/2016 -0.09% -0.48%
+ POWR 02/24/2016 Southern Company (SO) All Cash $431 million $18.75 $18.77 280,399 06/30/2016 -0.11% -0.59%
+ AFOP 04/07/2016 Corning Inc. (GLW) All Cash $305 million $18.50 $18.54 321,177 06/30/2016 -0.22% -1.19%
+ CKEC 03/03/2016 AMC Entertainment Holdings, Inc. (AMC) All Cash $1.1 billion $30.00 $30.09 94,865 12/31/2016 -0.30% -0.44%
+ CPGX 03/17/2016 TransCanada Corporation (TRP) All Cash $13 billion $25.50 $25.61 6,113,282 12/31/2016 -0.43% -0.63%
+ HPY 12/15/2015 Global Payments Inc. (GPN) Cash Plus Stock $4.3 billion $102.29 $102.80 13,339,889 05/31/2016 -0.50% -5.04%
+ RSE 02/25/2016 an affiliate of Brookfield Asset Management Inc. (N/A) All Cash $2.8 billion $18.25 $18.36 320,160 09/30/2016 -0.60% -1.38%
+ TE 09/05/2015 Emera (N/A) All Cash $10.4 billion $27.55 $27.72 1,994,138 06/30/2016 -0.61% -3.39%
+ MEG 01/27/2016 Nexstar Broadcasting Group, Inc. (NXST) Special Conditions $4.6 billion $17.14 $17.26 415,072 12/15/2016 -0.70% -1.08%
+ WCN 01/19/2016 Progressive Waste Solutions Ltd. (BIN) All Stock N/A $64.40 $64.95 523,141 06/30/2016 -0.84% -4.66%
+ HTS 04/11/2016 Annaly Capital Management, Inc. (NLY) All Stock $1.5 billion $15.58 $15.75 1,369,922 09/30/2016 -1.10% -2.55%
+ COB 11/23/2015 Capital Bank Financial Corp. (CBF) All Stock $350 million $13.17 $13.37 38,655 03/31/2016 -1.49% 21.74%
+ ABCW 01/12/2016 Old National Bancorp. (ONB) All Stock 461 million $46.19 $47.13 36,985 06/30/2016 -1.99% -11.01%
+ LPSB 03/10/2016 Horizon Bancorp (HBNC) All Stock $94.1 million $15.57 $15.92 24,881 09/30/2016 -2.17% -5.02%
+ FXCB 12/08/2015 Univest Corporation of Pennsylvania (UVSP) All Stock $244.3 million $19.34 $19.79 11,328 09/30/2016 -2.30% -5.31%
+ BITI 01/19/2016 Acorda Therapeutics, Inc. (ACOR) All Cash $363 million $25.60 $26.48 3,161 09/30/2016 -3.32% -7.68%
+ HNSN 04/20/2016 Auris Surgical Robotics (N/A) All Cash $80 million $4.00 $4.15 329,053 06/30/2016 -3.61% -19.99%
+ CACQ 12/22/2014 Caesars Entertainment Corporation (CZR) All Stock N/A $4.89 $8.42 102,523 03/31/2015 -41.88% 39.10%

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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Insider Weekends April 22, 2016

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April 24, 2016 | Insider Buying | Author Asif

Welcome to edition 305 of Insider Weekends. Insider buying decreased last week with insiders buying $8.03 million of stock compared to $8.36 million in the week prior. Selling increased with insiders selling $596.17 million of stock last week compared to $362.04 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 went up to 74.28. In other words, insiders sold more than 74 times as much stock as they purchased. The Sell/Buy ratio this week compares unfavorably with the prior week, when the ratio stood at 43.36. 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.

With both the S&P 500 and the Dow within a stone’s throw of their all-time highs, this big jump in the insider sell/buy ratio could have been a concern if we were not in the thick of the first quarter earnings season. If the ratio remains elevated or insider buying remains muted as we exit the earnings season then the old adage “Sell in May and go away” might be relevant this year. Looking back over the last five years, that rule of thumb worked very well in 2011 and 2015 but not so much from 2012 through 2014, showing how timing the market over the short-term or long-term remains challenging if not nearly impossible.

Insider Sell Buy Ratio April 22, 2016

Insider Sell Buy Ratio April 22, 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. United Continental Holdings, Inc. (UAL): $50.74

President and CEO Oscar Munoz acquired 19,800 shares of this airline, paying $50.53 per share for a total amount of $1 million. Mr. Munoz increased his stake by 13.76% to 163,675 shares with this purchase.

You can view the list of recent insider transactions for United Continental Holdings, Inc. here.

P/E: 2.61 Forward P/E: 5.89 Industry P/E: 8.76
P/S: 0.5 Price/Book: 2.15 EV/EBITDA: 3.44
Market Cap: $18.24B Avg. Daily Volume: 5,609,960 52 Week Range: $42.17 – $63.9

2. Akamai Technologies, Inc. (AKAM): $51.13

Chief Executive Officer F. Thomson Leighton acquired 19,546 shares of this content delivery and cloud infrastructure company, paying $51.15 per share for a total amount of $999,778. These shares were purchased indirectly through a trust.

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

P/E: 28.72 Forward P/E: 16.55 Industry P/E: 31.49
P/S: 4.14 Price/Book: 2.91 EV/EBITDA: 11.85
Market Cap: $9.03B Avg. Daily Volume: 2,702,700 52 Week Range: $39.43 – $78.44

3. Inovio Pharmaceuticals, Inc. (INO): $10.33

Director Morton Collins acquired 68,400 shares of this biotech company, paying $9.52 per share for a total amount of $650,925. These shares were purchased indirectly through trusts and IRA accounts.

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

P/E: N/A Forward P/E: N/A Industry P/E: 26.67
P/S: 19.83 Price/Book: 3.81 EV/EBITDA: -19.2
Market Cap: $746.07M Avg. Daily Volume: 2,161,850 52 Week Range: $4.5 – $10.57

4. Ryman Hospitality Properties, Inc. (RHP): $50.34

Chairman & CEO Colin V. Reed acquired 7,400 shares of this hotel operator, paying $52.53 per share for a total amount of $388,694. Mr. Reed increased his stake by 0.73% to 1,015,484 shares with this purchase.

You can view the list of recent insider transactions for Ryman Hospitality Properties, Inc. here.

P/E: 23.31 Forward P/E: 13.46 Industry P/E: 21.43
P/S: 2.39 Price/Book: 6.89 EV/EBITDA: 13.4
Market Cap: $2.54B Avg. Daily Volume: 277,486 52 Week Range: $41.5 – $61.02

5. Monsanto Company (MON): $94.08

Director Charles S. McMillan acquired 3,500 shares of this agricultural products company, paying $87.25 per share for a total amount of $305,375. Mr. McMillan increased his stake by 6.37% to 58,440 shares with this purchase.

You can view the list of recent insider transactions for Monsanto Company here.

P/E: 24.47 Forward P/E: 17.17 Industry P/E: 14.95
P/S: 2.89 Price/Book: 11.64 EV/EBITDA: 11.21
Market Cap: $41.10B Avg. Daily Volume: 3,311,800 52 Week Range: $81.22 – $123.82

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

Notable Insider Sales:

1. The Charles Schwab Corporation (SCHW): $29.72

Chairman Charles R. Schwab sold 560,000 shares of this investment brokerage for $29.02, generating $16.25 million from the sale. These shares were sold indirectly through a trust.

You can view the list of recent insider transactions for The Charles Schwab Corporation here.

P/E: 28.85 Forward P/E: 19.3 Industry P/E: 16.16
P/S: 6.1 Price/Book: 3.22 EV/EBITDA: N/A
Market Cap: $39.27B Avg. Daily Volume: 10,509,100 52 Week Range: $21.51 – $35.72

2. QVC Group (QVCA): $26.64

Director Mark C. Vadon sold 279,000 shares of this online commerce company for $26.37, generating $7.36 million from the sale. These shares were sold indirectly by Lake Tana LLC.

You can view the list of recent insider transactions for QVC Group here.

P/E: 14.11 Forward P/E: 16.65 Industry P/E: 36.03
P/S: N/A Price/Book: 1.81 EV/EBITDA: N/A
Market Cap: $12.46B Avg. Daily Volume: 2,227,240 52 Week Range: $22.51 – $31.62

3. Intel Corporation (INTC): $31.64

Chairman Andy D. Bryant sold 185,740 shares of this semiconductor company for $31.98, generating $5.94 million from the sale.

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

P/E: 13.58 Forward P/E: 12.03 Industry P/E: 21.59
P/S: 2.73 Price/Book: 2.47 EV/EBITDA: 6.35
Market Cap: $149.26B Avg. Daily Volume: 24,287,200 52 Week Range: $24.87 – $35.59

4. salesforce.com, inc. (CRM): $76.48

Shares of this software-as-a-service (SaaS) provider were sold by 6 insiders:

  • Chairman of the Board & CEO Marc Benioff sold 62,500 shares for $76.35, generating $4.77 million from the sale.
  • EVP, General Counsel Amy E. Weaver sold 7,062 shares for $76.62, generating $541,082 from the sale. These shares were sold as a result of exercising options immediately prior to the sale.
  • Co-Founder Parker Harris sold 5,000 shares for $76.30, generating $381,498 from the sale. These shares were sold as a result of exercising options immediately prior to the sale.
  • Pres, Applications & Platform Alexandre Dayon sold 1,038 shares for $76.66, generating $79,573 from the sale. These shares were sold as a result of exercising options immediately prior to the sale.
  • Director Craig Conway sold 400 shares for $76.28, generating $30,512 from the sale.
  • Director John Victor Roos sold 180 shares for $77.53, generating $13,955 from the sale.

You can view the list of recent insider transactions for salesforce.com, inc. here.

P/E: N/A Forward P/E: 58.83 Industry P/E: 34.07
P/S: 7.74 Price/Book: 10.32 EV/EBITDA: 85.89
Market Cap: $51.89B Avg. Daily Volume: 5,487,330 52 Week Range: $52.6 – $82.9

5. Capella Education Co. (CPLA): $52.48

Director Stephen G. Shank sold 108,907 shares of this Education & Training Services company for $50.70, generating $5.52 million from the sale. These shares were sold indirectly through trusts.

You can view the list of recent insider transactions for Capella Education Co. here.

P/E: 16.05 Forward P/E: 13.88 Industry P/E: 29.18
P/S: 1.41 Price/Book: 3.09 EV/EBITDA: 6.77
Market Cap: $615.56M Avg. Daily Volume: 103,170 52 Week Range: $39.06 – $67.56

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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Merger Arbitrage Mondays – April 18, 2016

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April 17, 2016 | Merger Arbitrage | Author Asif

Merger activity decreased last week with two new deals announced and four closing.

With anywhere from 80 to 100 active deals, it can get challenging to stay on top of all of them. One of the advantages of sharing information with investors that follow this strategy is the feedback we receive from time to time that helps us stay on top of updates to deals. I am thankful to several investors who have reached out over the last few weeks to help us update some closing dates or to notify us of deals we might have otherwise missed.

You can find all the active deals listed below in our Merger Arbitrage Tool that automatically updates itself during market hours.

Deal Statistics:

Total Number of Deals Closed in 2016 64
Total Number of Deals Not Completed in 2016 3
Total Number of Pending Deals
Cash Deals 41
Stock Deals 17
Stock & Cash Deals 19
Special Conditions 6
Total Number of Pending Deals 83
Total Deal Size $784.54 billion

New Deals:

  1. The acquisition of Hatteras Financial (HTS) by Annaly Capital Management (NLY) for $1.5 billion in a cash or stock deal. Under the terms of the agreement, Hatteras shareholders may elect to receive: (a) $5.55 in cash and 0.9894 shares of Annaly common stock; (b) $15.85 in cash (the “Cash Consideration Option”); or (c) 1.5226 shares of Annaly common stock (the “Stock Consideration Option”).  Hatteras shareholders who elect the Cash Consideration Option or Stock Consideration Option will be subject to proration, in each of the exchange offer and the subsequent second step merger, so that the aggregate consideration will consist of approximately 65% of Annaly’s common stock and approximately 35% in cash.
  2. The acquisition of Polycom (PLCM) by Mitel Networks Corporation (MITL) for $1.96 billion in a cash plus stock deal. Under the terms of the agreement, Polycom stockholders will be entitled to $3.12 in cash and 1.31 Mitel common shares for each share of Polycom common stock.

Deal Updates:

  1. On April 14, 2016, The Williams Companies (WMB) announced that the Delaware Court of Chancery had granted Williams’ motion to expedite the litigation commenced by Williams against Energy Transfer Equity (ETE) challenging the private offering of Series A Convertible Preferred Units that ETE disclosed on March 9, 2016.
  2. On April 15, 2016, Shenandoah Telecommunications Company (SHEN) announced that the Federal Communications Commission (FCC) approved Shentel’s proposed acquisition of NTELOS Holdings (NTLS). Shentel anticipates that the transactions will close within the next few weeks, subject to the remaining closing conditions.

Closed Deals:

  1. The acquisition of Blount International (BLT) by American Securities and P2 Capital Partners on April 12, 2016. It took 124 days for this deal to be completed.
  2. The acquisition of Cleco Corporation (CNL) by Macquarie Infrastructure and Real Assets and British Columbia Investment Management Corporation on April 13, 2016. It took 541 days for this deal to be completed.
  3. The acquisition of Mecox Lane Limited (MCOX) by Minat Associated on April 14, 2016. It took 114 days for this deal to be completed.
  4. The acquisition of Jarden (JAH) by Newell Rubbermaid (NWL) on April 14, 2016. It took 123 days for this deal to be completed.

Top 10 deals with largest spreads:

Symbol Announced

Date

Acquiring

Company

Closing

Price

Last

Price

Closing

Date

Profit Annualized

Profit

WMB 09/28/2015 Energy Transfer Equity, L.P. (ETE) $43.50 $17.55 06/30/2016 147.86% 739.32%
BHI 11/16/2014 Halliburton Company (HAL) $61.86 $43.80 04/30/2016 41.24% 1254.33%
ODP 02/04/2015 Staples, Inc. (SPLS) $9.69 $7.44 05/16/2016 30.24% 394.16%
CI 07/24/2015 Anthem, Inc. (ANTM) $177.03 $136.65 12/31/2016 29.55% 41.96%
HUM 07/03/2015 Aetna Inc. (AET) $216.97 $169.87 12/31/2016 27.72% 39.38%
APOL 02/08/2016 A consortium of investors including The Vistria Group, LLC, funds affiliated with Apollo Global Management, LLC and and Najafi Companies (N/A) $9.50 $7.61 12/31/2016 24.84% 35.27%
NKA 06/14/2015 Brookfield Infrastructure (N/A) $4.23 $3.52 12/31/2016 20.17% 28.65%
RAD 10/27/2015 Walgreens Boots Alliance, Inc. (WBA) $9.00 $7.97 12/31/2016 12.92% 18.35%
ALR 02/01/2016 Abbott Laboratories (ABT) $56.00 $49.87 12/31/2016 12.29% 17.46%
BXLT 01/11/2016 Shire plc (SHPG) $44.93 $40.51 06/30/2016 10.91% 54.53%

List of all pending deals:

Symbol Announced

Date

Acquiring

Company

Deal

Type

Closing

Value

Closing

Price

Last

Price

Volume Closing

Date

Profit Annu.

Profit

+ WMB 09/28/2015 Energy Transfer Equity, L.P. (ETE) Special Conditions $37.7 billion $43.50 $17.55 6,250,874 06/30/2016 147.86% 739.32%
+ BHI 11/16/2014 Halliburton Company (HAL) Cash Plus Stock N/A $61.86 $43.80 3,448,911 04/30/2016 41.24% 1254.33%
+ ODP 02/04/2015 Staples, Inc. (SPLS) Cash Plus Stock $6.3 billion $9.69 $7.44 8,904,903 05/16/2016 30.24% 394.16%
+ CI 07/24/2015 Anthem, Inc. (ANTM) Cash Plus Stock $54.2 billion $177.03 $136.65 1,590,850 12/31/2016 29.55% 41.96%
+ HUM 07/03/2015 Aetna Inc. (AET) Cash Plus Stock $37 billion $216.97 $169.87 868,457 12/31/2016 27.72% 39.38%
+ APOL 02/08/2016 A consortium of investors including The Vistria Group, LLC, funds affiliated with Apollo Global Management, LLC and and Najafi Companies (N/A) All Cash $1.1 billion $9.50 $7.61 1,241,654 12/31/2016 24.84% 35.27%
+ NKA 06/14/2015 Brookfield Infrastructure (N/A) All Cash $911.9 million $4.23 $3.52 9,935 12/31/2016 20.17% 28.65%
+ RAD 10/27/2015 Walgreens Boots Alliance, Inc. (WBA) All Cash $17.2 billion $9.00 $7.97 10,957,983 12/31/2016 12.92% 18.35%
+ ALR 02/01/2016 Abbott Laboratories (ABT) All Cash $5.8 billion $56.00 $49.87 733,070 12/31/2016 12.29% 17.46%
+ BXLT 01/11/2016 Shire plc (SHPG) Cash Plus Stock $32 billion $44.93 $40.51 5,979,857 06/30/2016 10.91% 54.53%
+ HTCH 11/02/2015 TDK Corporation (N/A) Special Conditions $126 million $4.00 $3.65 190,380 06/30/2016 9.59% 47.95%
+ IM 02/17/2016 Tianjin Tianhai Investment Company, Ltd. (N/A) All Cash $6 billion $38.90 $35.59 1,173,868 12/31/2016 9.30% 13.21%
+ KUTV 04/05/2016 Shanda Investment Holdings Limited (N/A) All Cash N/A $1.08 $1.00 213,146 12/31/2016 8.00% 11.36%
+ TYC 01/25/2016 Johnson Controls Inc. (JCI) All Stock $16.5 billion $38.97 $36.79 1,481,753 09/30/2016 5.94% 13.13%
+ ITC 02/09/2016 Fortis Inc. (FTS.TO) Cash Plus Stock $11.3 billion $45.69 $43.17 794,439 12/31/2016 5.84% 8.29%
+ NPD 03/16/2016 China Neptunus Drugstore Holding Ltd. and Neptunus Global Limited (N/A) All Cash $258.66 million $2.62 $2.48 47,931 09/30/2016 5.65% 12.49%
+ VAL 03/20/2016 The Sherwin-Williams Company (SHW) All Cash $11.3 billion $113.00 $107.04 835,633 03/31/2017 5.57% 5.86%
+ MY 02/03/2016 A consortium of investors (the �Buyer Consortium�), including Mr. Chuanwei Zhang , the Chairman and Chief Executive Officer of the Company (N/A) All Cash $408 million $2.51 $2.39 446,234 06/30/2016 5.02% 25.10%
+ MTSN 12/01/2015 Beijing E-Town Dragon Semiconductor Industry Investment Center (N/A) All Cash $300 million $3.80 $3.64 107,682 06/30/2016 4.40% 21.98%
+ AMTG 02/26/2016 Apollo Commercial Real Estate Finance, Inc. (ARI) Cash Plus Stock $641 million $14.18 $13.61 186,118 08/15/2016 4.20% 12.87%
+ CVC 09/17/2015 Altice (N/A) All Cash $17.7 billion $34.90 $33.59 9,280,661 06/30/2016 3.90% 19.50%
+ AF 10/29/2015 New York Community Bancorp Inc. (NYCB) Cash Plus Stock $2 billion $16.14 $15.58 410,003 12/31/2016 3.59% 5.10%
+ PLCM 04/15/2016 Mitel Networks Corporation (MITL) Cash Plus Stock $1.96 billlion $12.45 $12.02 18,811,351 09/30/2016 3.55% 7.86%
+ VBIV 10/26/2015 SciVac Therapeutics Inc. (SVACF) All Stock N/A $2.50 $2.42 134,767 04/30/2016 3.18% 96.78%
+ FGL 11/09/2015 Anbang Insurance Group Co., Ltd. (N/A) All Cash N/A $26.80 $26.00 655,278 06/30/2016 3.08% 15.38%
+ CBNK 04/04/2016 Westfield Financial Inc. (WFD) All Stock $110 million $18.55 $18.01 5,323 12/31/2016 3.01% 4.27%
+ WIBC 12/07/2015 BBCN Bancorp, Inc. (BBCN) All Stock $1 billion $11.07 $10.77 246,097 06/30/2016 2.80% 14.00%
+ VA 04/04/2016 Alaska Air Group, Inc. (ALK) All Cash $4 billion $57.00 $55.50 924,062 01/01/2017 2.70% 3.82%
+ HE 12/03/2014 NextEra Energy, Inc. (NEE) Special Conditions $4.3 billion $33.50 $32.70 341,933 06/30/2016 2.45% 12.23%
+ FCTY 03/10/2016 Midland Financial Co. (N/A) All Cash N/A $11.22 $10.96 16,750 12/31/2016 2.37% 3.37%
+ IHS 03/21/2016 Markit Ltd. (MRKT) All Stock N/A $126.33 $123.48 270,833 12/31/2016 2.31% 3.28%
+ TWC 05/26/2015 Charter Communications, Inc. (CHTR) Cash Plus Stock $78.7 billion $209.84 $205.44 1,617,520 06/30/2016 2.14% 10.70%
+ DSKY 12/31/2015 Dream Investment Holdings Limited (N/A) All Cash N/A $14.00 $13.73 57,249 06/30/2016 1.97% 9.83%
+ RRM 02/26/2016 SES (N/A) All Cash $242 million $13.29 $13.04 1,581 08/15/2016 1.92% 5.88%
+ SNDK 10/21/2015 Western Digital Corporation (WDC) Cash Plus Stock $19 billion $77.16 $75.76 3,218,109 06/30/2016 1.85% 9.27%
+ EDE 02/09/2016 Algonquin Power & Utilities Corp. (AQN.TO) All Cash $2.4 billion $34.00 $33.42 179,164 03/31/2017 1.74% 1.83%
+ AVNU 01/29/2016 Pinnacle Financial Partners Inc. (PNFP) Cash Plus Stock $201.4 million $20.42 $20.09 61,890 09/15/2016 1.63% 3.97%
+ BNK 11/09/2015 Bank of the Ozarks, Inc. (OZRK) Special Conditions $402.5 million $25.00 $24.62 38,323 04/30/2016 1.54% 46.95%
+ MNRK 12/17/2015 Towne Bank (TOWN) All Stock $221 million $18.03 $17.77 33,026 06/30/2016 1.47% 7.34%
+ RSTI 03/16/2016 Coherent Inc. (COHR) All Cash $942 million $32.50 $32.07 120,660 12/31/2016 1.34% 1.90%
+ MEG 01/27/2016 Nexstar Broadcasting Group, Inc. (NXST) Special Conditions $4.6 billion $17.14 $16.93 616,291 12/15/2016 1.24% 1.88%
+ PNX 09/29/2015 Nassau Reinsurance Group Holdings L.P. (N/A) All Cash $217.2 million $37.50 $37.06 28,522 06/30/2016 1.19% 5.94%
+ PULB 12/03/2015 First Busey Corporation (BUSE) All Stock $210.7 million $16.37 $16.20 14,239 06/30/2016 1.04% 5.21%
+ GAS 08/24/2015 Southern Company (SO) All Cash $12 billion $66.00 $65.38 344,147 12/31/2016 0.95% 1.35%
+ FNFG 10/30/2015 KeyCorp. (KEY) Cash Plus Stock $4.1 billion $10.26 $10.16 1,888,600 09/30/2016 0.94% 2.09%
+ FMER 01/26/2016 Huntington Bancshares Incorporated (HBAN) Cash Plus Stock $3.4 billion $22.08 $21.90 990,460 09/30/2016 0.82% 1.81%
+ DATE 12/07/2015 FutureWorld Inc. (N/A) All Cash N/A $7.56 $7.50 30,111 04/30/2016 0.80% 24.33%
+ VSCP 03/25/2016 BioTelemetry, Inc. (BEAT) All Cash $15.5 million $4.05 $4.02 15,522 05/09/2016 0.75% 12.97%
+ ARG 11/17/2015 Air Liquide (N/A) All Cash $13.4 billion $143.00 $142.00 526,296 08/15/2016 0.70% 2.16%
+ ADT 02/16/2016 An Affiliate of Certain Funds Managed By Affiliates of Apollo Global Management, LLC (N/A) All Cash $6.94 billion $42.00 $41.71 2,269,596 06/30/2016 0.70% 3.48%
+ ATNY 02/29/2016 an affiliate of private equity firm J. F. Lehman & Company (N/A) All Cash $110 million $2.00 $1.99 227,817 06/30/2016 0.50% 2.51%
+ CBNJ 01/05/2016 OceanFirst Financial Corp. (OCFC) Cash Plus Stock $208.1 million $13.79 $13.73 43,740 09/30/2016 0.43% 0.95%
+ KLAC 10/21/2015 Lam Research Corporation (LRCX) Cash Plus Stock $10.6 billion $72.82 $72.53 486,450 06/30/2016 0.40% 2.00%
+ CPGX 03/17/2016 TransCanada Corporation (TRP) All Cash $13 billion $25.50 $25.41 5,893,129 12/31/2016 0.35% 0.50%
+ PNY 10/26/2015 Duke Energy Corporation (DUK) All Cash $6.7 billion $60.00 $59.80 401,593 12/31/2016 0.33% 0.47%
+ TUMI 03/03/2016 Samsonite International S.A. (N/A) All Cash $1.8 billion $26.75 $26.67 649,468 06/30/2016 0.30% 1.50%
+ NTLS 08/10/2015 Shenandoah Telecommunications Co. (SHEN) All Cash $640 million $9.25 $9.23 156,086 04/30/2016 0.22% 6.59%
+ POWR 02/24/2016 Southern Company (SO) All Cash $431 million $18.75 $18.72 235,751 06/30/2016 0.16% 0.80%
+ FCS 11/18/2015 ON Semiconductor Corp. (ON) All Cash $2.4 billion $20.00 $19.98 365,793 04/14/2016 0.10% 0.00%
+ HFFC 11/30/2015 Great Western Bancorp. Inc. (GWB) All Stock $139.5 million $18.82 $18.81 27,331 06/30/2016 0.07% 0.37%
+ HPY 12/15/2015 Global Payments Inc. (GPN) Cash Plus Stock $4.3 billion $103.89 $103.82 304,090 05/31/2016 0.07% 0.60%
+ TFM 03/14/2016 Apollo Global Management, LLC (APO) All Cash $1.36 billion $28.50 $28.48 2,750,441 06/30/2016 0.07% 0.35%
+ NTI 12/21/2015 Western Refining, Inc. (WNR) Cash Plus Stock N/A $22.90 $22.89 961,750 06/30/2016 0.06% 0.30%
+ SLI 04/07/2016 Handy & Harman Ltd. (HNH) All Cash $166.32 million $40.00 $39.98 20,884 06/30/2016 0.05% 0.25%
+ NEWP 02/23/2016 MKS Instruments, Inc. (MKSI) All Cash $980 million $23.00 $23.00 262,963 06/30/2016 0.00% 0.00%
+ AFOP 04/07/2016 Corning Inc. (GLW) All Cash $305 million $18.50 $18.51 580,322 06/30/2016 -0.05% -0.27%
+ STR 02/01/2016 Dominion Resources, Inc. (D) All Cash $4.4 billion $25.00 $25.02 1,087,035 12/15/2016 -0.08% -0.12%
+ RKUS 04/04/2016 Brocade Communications Systems, Inc. (BRCD) Cash Plus Stock $1.2 billion $13.49 $13.51 824,623 07/31/2016 -0.13% -0.45%
+ CKEC 03/03/2016 AMC Entertainment Holdings, Inc. (AMC) All Cash $1.1 billion $30.00 $30.06 692,833 12/31/2016 -0.20% -0.28%
+ CHEV 11/24/2015 MainSource Financial Group, Inc. (MSFG) All Stock $107.4 million $14.79 $14.84 32,811 09/30/2016 -0.36% -0.80%
+ RSE 02/25/2016 an affiliate of Brookfield Asset Management Inc. (N/A) All Cash $2.8 billion $18.25 $18.32 143,948 09/30/2016 -0.38% -0.85%
+ FSYS 09/01/2015 Westport Innovations Inc. (WPRT) All Stock $126.36 million $5.43 $5.45 18,533 03/31/2016 -0.39% 7.83%
+ CKP 03/02/2016 an affiliate of CCL Industries Inc. (N/A) All Cash $443 million $10.15 $10.19 143,438 09/30/2016 -0.39% -0.87%
+ TE 09/05/2015 Emera (N/A) All Cash $10.4 billion $27.55 $27.69 1,031,452 06/30/2016 -0.51% -2.53%
+ HTS 04/11/2016 Annaly Capital Management, Inc. (NLY) All Stock $1.5 billion $15.85 $15.94 1,334,920 09/30/2016 -0.56% -1.25%
+ COB 11/23/2015 Capital Bank Financial Corp. (CBF) All Stock $350 million $13.38 $13.48 83,056 03/31/2016 -0.73% 14.80%
+ WCN 01/19/2016 Progressive Waste Solutions Ltd. (BIN) All Stock N/A $63.72 $64.28 500,630 06/30/2016 -0.88% -4.38%
+ HOT 11/16/2015 Marriott International, Inc. (MAR) Special Conditions $13.6 billion $79.53 $80.39 3,573,256 06/30/2016 -1.07% -5.35%
+ FXCB 12/08/2015 Univest Corporation of Pennsylvania (UVSP) All Stock $244.3 million $19.20 $19.69 9,850 09/30/2016 -2.49% -5.51%
+ LPSB 03/10/2016 Horizon Bancorp (HBNC) All Stock $94.1 million $15.45 $15.87 6,275 09/30/2016 -2.62% -5.79%
+ BITI 01/19/2016 Acorda Therapeutics, Inc. (ACOR) All Cash $363 million $25.60 $26.43 9,600 09/30/2016 -3.14% -6.95%
+ ABCW 01/12/2016 Old National Bancorp. (ONB) All Stock 461 million $44.56 $46.10 216,080 06/30/2016 -3.34% -16.72%
+ CACQ 12/22/2014 Caesars Entertainment Corporation (CZR) All Stock N/A $4.81 $7.07 62,885 03/31/2015 -31.91% 30.33%

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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Insider Weekends April 15, 2016

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April 17, 2016 | Insider Buying | Author Asif

Welcome to edition 304 of Insider Weekends. Insider buying decreased significantly last week with insiders buying $8.36 million of stock compared to $119.62 million in the week prior. Selling also declined with insiders selling $362.04 million of stock last week compared to $906 million in the week prior.

As we mentioned in our last report, 94% of the insider buying in the prior week was related to a single private placement transaction and insider buying dropped to just $7.2 million once you remove that transaction. In that context, insider buying did not drop as precipitously as it appears at first blush but is still low since we are entering earnings season.

One of the more interesting insider purchases last week did not make the top 5 list but caught my attention because the stock popped 9.33% over the course of four days after the purchase. The CEO of Stage Stores, a specialty department stores company with 834 stores in 39 states, purchased 24,556 shares paying $6.68 per share for a total amount of $163,951. The stock sports an unusually high dividend yield of 8.1% and trades for just 3 times EBITDA. The dividend has been going up every year for the last 5 years. On the negative side, growth appears to have stalled with the company reporting a 3.5% drop in revenue last quarter and free cash flow was negative in two out of the last three years. The short ratio at 8 is higher than I would have expected. Insider buying provides an interesting way to uncover new companies for further research and may not in itself be a buying signal.

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 went up to 43.36. In other words, insiders sold more than 43 times as much stock as they purchased. The Sell/Buy ratio this week compares unfavorably with the prior week, when the ratio stood at 7.57. 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 April 15, 2016

Insider Sell Buy Ratio April 15, 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. Sears Holdings Corporation (SHLD): $16.9

Chief Executive Officer Edward S. Lampert acquired 57,261 shares of this department stores chain, paying $14.34 per share for a total amount of $821,267. Mr. Lampert increased his stake by 0.18% to 31,045,117 shares with this purchase.

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

P/E: N/A Forward P/E: N/A Industry P/E: 22.92
P/S: 0.07 Price/Book: N/A EV/EBITDA: -4.37
Market Cap: $1.80B Avg. Daily Volume: 665,447 52 Week Range: $14.05 – $44.72

2. Western Refining Logistics, LP (WNRL): $24.04

President and CEO Jeff A. Stevens acquired 31,800 shares of this oil and gas pipelines company, paying $24.36 per share for a total amount of $774,759. Mr. Stevens increased his stake by 29.88% to 138,226 shares with this purchase.

You can view the list of recent insider transactions for Western Refining Logistics, LP here.

P/E: 18.02 Forward P/E: 12.52 Industry P/E: 28.76
P/S: 0.44 Price/Book: N/A EV/EBITDA: 12.92
Market Cap: $1.14B Avg. Daily Volume: 76,944 52 Week Range: $17.35 – $32.7

3. aTyr Pharma Inc. (LIFE): $4.19

Director Paul Schimmel acquired 202,840 shares of this biotech company, paying $3.64 per share for a total amount of $738,884. Mr. Schimmel increased his stake by 251.22% to 283,581 shares with this purchase. 77,400 of these shares were purchased indirectly through a trust.

You can view the list of recent insider transactions for aTyr Pharma Inc. here.

P/E: N/A Forward P/E: N/A Industry P/E: N/A
P/S: N/A Price/Book: 0.77 EV/EBITDA: 0.08
Market Cap: $99.21M Avg. Daily Volume: 372,155 52 Week Range: $3.03 – $28.29

4. SeaChange International, Inc. (SEAC): $3.78

Shares of this software and media services company were acquired by 2 insiders:

  • Chief Executive Officer Edward Terino acquired 40,000 shares, paying $3.83 per share for a total amount of $153,000. Mr. Terino increased his stake by 21.00% to 230,475 shares with this purchase.
  • Director Steven Craddock acquired 25,000 shares, paying $3.90 per share for a total amount of $97,500. Mr. Craddock increased his stake by 42.21% to 84,233 shares with this purchase.

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

P/E: N/A Forward P/E: 27 Industry P/E: 35.69
P/S: 1.14 Price/Book: 0.83 EV/EBITDA: -6.31
Market Cap: $127.36M Avg. Daily Volume: 225,195 52 Week Range: $3.7 – $7.93

5. Bank of the Ozarks, Inc. (OZRK): $43.74

Shares of this regional bank were acquired by 2 insiders:

  • Director Richard L. Cisne acquired 3,700 shares, paying $44.29 per share for a total amount of $163,863. Mr. Cisne increased his stake by 4.98% to 77,950 shares with this purchase.
  • Director John B. Reynolds acquired 750 shares, paying $43.64 per share for a total amount of $32,730. Mr. Reynolds increased his stake by 4.19% to 18,649 shares with this purchase.

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

P/E: 20.93 Forward P/E: 13.93 Industry P/E: 15.67
P/S: 8.47 Price/Book: 2.69 EV/EBITDA: N/A
Market Cap: $3.97B Avg. Daily Volume: 1,322,640 52 Week Range: $35.87 – $54.96

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

Notable Insider Sales:

1. Bed Bath & Beyond Inc. (BBBY): $48.04

Co-Chairman Warren Eisenberg sold 959,837 shares of this retail chain for $47.56, generating $45.65 million from the sale. 165,970 of these shares were sold as a result of exercising options immediately prior to the sale and 321,126 shares were sold indirectly by Mr. Eisenberg’s spouse.

You can view the list of recent insider transactions for Bed Bath & Beyond Inc. here.

P/E: 9.5 Forward P/E: 9.19 Industry P/E: 17.78
P/S: 0.64 Price/Book: 2.99 EV/EBITDA: 5.1
Market Cap: $7.86B Avg. Daily Volume: 2,279,390 52 Week Range: $41.26 – $74.21

2. QVC Group (QVCA): $26.04

Director Mark C. Vadon sold 855,000 shares of this online commerce company for $25.82, generating $22.08 million from the sale. These shares were sold indirectly by Lake Tana LLC.

You can view the list of recent insider transactions for QVC Group here.

P/E: 13.79 Forward P/E: 16.28 Industry P/E: 52.82
P/S: N/A Price/Book: 1.76 EV/EBITDA: N/A
Market Cap: $12.18B Avg. Daily Volume: 2,255,060 52 Week Range: $22.51 – $31.62

3. ServiceNow, Inc. (NOW): $63.28

Shares of this software-as-a-service provider were sold by 2 insiders:

  • Chief Product Officer Frederic B. Luddy sold 150,000 shares for $62.92, generating $9.44 million from the sale. These shares were sold indirectly through a trust.
  • Chief Revenue Officer David Schneider sold 30,900 shares for $63.62, generating $1.97 million from the sale. 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 ServiceNow, Inc. here.

P/E: N/A Forward P/E: 63.28 Industry P/E: 23.24
P/S: 10.11 Price/Book: 17.87 EV/EBITDA: -92.84
Market Cap: $10.17B Avg. Daily Volume: 2,884,870 52 Week Range: $46 – $91.28

4. JPMorgan Chase & Co. (JPM): $61.87

Shares of this JP Morgan were sold by 4 insiders:

  • Chief Operating Officer Matthew E. Zames sold 45,144 shares for $61.77, generating $2.79 million from the sale.
  • Executive Vice President Gordon Smith sold 32,096 shares for $62.01, generating $1.99 million from the sale.
  • Managing Director Daniel E. Pinto sold 28,837 shares for $62.38, generating $1.79 million from the sale.
  • Chief Financial Officer Marianne Lake sold 13,684 shares for $62.41, generating $854,064 from the sale.

You can view the list of recent insider transactions for JPMorgan Chase & Co. here.

P/E: 10.31 Forward P/E: 9.68 Industry P/E: 12.43
P/S: 2.56 Price/Book: 1.04 EV/EBITDA: N/A
Market Cap: $226.63B Avg. Daily Volume: 20,161,900 52 Week Range: $50.07 – $70.61

5. Palo Alto Networks, Inc. (PANW): $140.66

Shares of this network security company were sold by 2 insiders:

  • CTO Nir Zuk sold 30,000 shares for $151.25, generating $4.54 million from the sale.
  • Director Asheem Chandna sold 15,000 shares for $141.26, generating $2.12 million from the sale. These shares were sold indirectly through a trust.

You can view the list of recent insider transactions for Palo Alto Networks, Inc. here.

P/E: N/A Forward P/E: 53.89 Industry P/E: 17.32
P/S: 10.81 Price/Book: 20.98 EV/EBITDA: -98.21
Market Cap: $12.43B Avg. Daily Volume: 2,326,750 52 Week Range: $111.09 – $200.55

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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