Insider Buying

Insider Weekends – January 27, 2012

January 28, 2012 | Insider Buying | Author Asif

Welcome to edition eighty six of Insider Weekends. Insider buying increased with insiders purchasing $30.96 million of their stock last week compared to $28.83 million in the week prior. Selling also increased with insiders selling $716.8 million worth of stock last week compared to $580.05 million in the week prior. We excluded a large $463 million insider purchase of Icahn Enterprises (IEP) by Carl Icahn because it was related to participation in a rights offering and not an open market purchase.

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 23.15. In other words, insiders sold more than 23 times as much stock as they purchased. The Sell/Buy ratio this week compares unfavorably with the week prior when the ratio stood at 20.12.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 January 27, 2012

Note: As mentioned in the first post in this series Introduction to Insider Weekends, 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. Kronos Worldwide Inc. (KRO): $23.1

Chairman of the Board Harold C. Simmons acquired 81,000 shares of this titanium dioxide producer, paying $21.04 per share for a total amount of $1.7 million. These shares were purchased indirectly by Mr. Simmons’s spouse.

This is a sizable purchase but not as large as her 367,666 share purchase in November as you can see from this page. The company looks attractive on several key metrics and scores a perfect 10 on our proprietary model.

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

2. NII Holdings Inc. (NIHD): $20.43

President, Nextel Mexico Peter A. Foyo acquired 37,126 shares of this wireless communications company, paying $19.24 per share for a total amount of $714,211. Mr. Foyo increased his stake by 53% to 107,175 shares with this purchase.

This is the fifth insider to purchase shares of this wireless service provider as you can see from this page. We covered the company in our third weekly focus article and I hold the stock both in my personal portfolio as well as the Insider Trade Reports portfolio.

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

3. InterDigital, Inc. (IDCC): $38.05

Shares of this wireless technology solutions provider were acquired by 3 insiders:

• Director Steven T. Clontz acquired 10,000 shares, paying $36.43 per share for a total amount of $364,300. Mr. Clontz increased his stake by 11.65% to 95,807 shares with this purchase.
• President and CEO William J. Merritt acquired 6,828 shares, paying $36.52 per share for a total amount of $249,359. Mr. Merritt increased his stake by 6.33% to 114,695 shares with this purchase.
• Executive VP, Communications & Investor Relations Janet Meenehan Point acquired 1,500 shares, paying $36.29 per share for a total amount of $54,435. Ms. Point increased her stake by 8.93% to 18,295 shares with this purchase.

This cluster of insider purchases follows a 19% drop in the stock earlier this week. The stock dropped sharply after an announcement by the company that it had ended a review of a possible sale of the company earlier this week and that it could not find any buyers for its wireless patents. The company’s pre-announcement of Q4 results with revenue of $74.2 million and net income of $21 million or 46 cents per share did little to appease investors.

Revenue and earnings are down year-over-year as well as on a sequential quarter basis. On the positive side, the company has over half a billion in net cash on its balance sheet, has great margins on account of the nature of its business (licensing its wireless patents) and trades at a reasonable valuation of 7 times EBITDA.

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

4. Unilife Corporation (UNIS): $4.23

Chief Executive Officer Alan Shortall acquired 25,000 shares of this syringe and healthcare equipment manufacturer, paying $4.05 per share for a total amount of $101,314. Mr. Shortall increased his stake by 0.46% to 5,441,643 shares with this purchase.

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

5. U.S. Bancorp (USB): $27.86

Shares of this regional bank were acquired by 2 insiders:

• EVP, General Counsel, and Secretary Lee R. Mitau acquired 1,500 shares, paying $25.35 per share for a total amount of $38,025.
• Vice Chairman Joseph C. Hoesley acquired 1,500 shares, paying $25.55 per share for a total amount of $38,325. These shares were purchased indirectly by IRA.

You can view the list of recent insider transactions for U.S. Bancorp here.

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

Notable Insider Sales:

1. Microsoft Corporation (MSFT): $29.23

Shares of Microsoft were sold by 4 insiders:

• Founder Bill Gates sold 10 million shares for $29.39, generating $293.9 million from the sale.
• Senior Vice President Lisa E. Brummel sold 151,112 shares for $29.62, generating $4.5 million from the sale. These shares were sold as a result of exercising options immediately prior to the sale.
• Senior Vice President Bradford L. Smith sold 110,000 shares for $29.10, generating $3.2 million from the sale.
• Chief Accounting Officer Frank H. Brod sold 10,000 shares for $29.75, generating $297,510 from the sale.

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

2. AutoZone Inc. (AZO): $347.58

Shares of this auto parts retailer were sold by 3 insiders:

• 10% owner Eddie Lampert (of Sears Holdings fame) sold 300,024 shares for $347.04, generating $104.12 million from the sale. 117,930 of these shares were sold directly and the rest were sold indirectly through ESL Investments.
• Senior Vice President Timothy W. Briggs sold 5,625 shares for $346.82, generating $1.95 million from the sale. These shares were sold as a result of exercising options immediately prior to the sale.
• Director William C. Crowley sold 1,522 shares for $347.05, generating $528,206 from the sale. 1,004 of these shares were sold directly and the rest were sold indirectly through Tynan, LLC.

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

3. CLARCOR Inc. (CLC): $51.77

Shares of this filtration systems provider were sold by 2 insiders:

• Director Norman E. Johnson sold 208,819 shares for $51.92, generating $10.8 million from the sale.
• Director Robert J. Burgstahler sold 15,000 shares for $52.36, generating $785,452 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 CLARCOR Inc. here.

4. EXCO Resources Inc. (XCO): $8.21

Chairman and CEO Douglas H. Miller sold 1,186,681 shares of this natural gas company for $7.85, generating $9.3 million from the sale.

This was an interesting sale as it was done in order to satisfy a margin call.

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

5. Consolidated Edison Inc. (ED): $58.89

Director Eugene R. McGrath sold 100,000 shares of this electric utility for $58.39, generating $5.8 million from the sale.

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

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

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Insider Weekends – January 20, 2012

January 21, 2012 | Insider Buying | Author Asif

Welcome to edition eighty five of Insider Weekends. Insider buying declined sharply with insiders purchasing $28.83 million of their stock last week compared to $88.3 million in the week prior. Selling on the other hand increased with insiders selling $580.05 million worth of stock last week compared to $368.3 million in the week prior.

While Carl Icahn, Eddie Lampert and Sardar Biglari continued their purchases of WebMD (WBMD), Sears Holdings (SHLD) and Cracker Barrel (CBRL) respectively, their purchases were smaller than those we reported last week. Sears Holding in particular has been on fire since Mr. Lampert started buying, making it the largest percentage gainer in the S&P 500 in 2012 with a 54% gain since the start of the year.

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 jumped to 20.12. In other words, insiders sold more than 20 times as much stock as they purchased. The Sell/Buy ratio this week compares unfavorably with the week prior when the ratio stood at 4.2.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 January 20, 2012

Note: As mentioned in the first post in this series Introduction to Insider Weekends, 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. GeoEye, Inc. (GEOY): $22.04

We normally don’t include purchases by 10% owners but I decided to make an exception this week to highlight Stephen Feinberg’s purchases of GeoEye through his fund Cerberus Capital Management.

He picked up 385,000 shares of this satellite imaging products company, paying $21.50 per share for a total amount of $8.28 million. As you can see from this page, Cerberus has been consistently buying shares since November.

The stock trades for 1.21 times tangible book value and less than 5 times EBITDA.

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

2. Sears Holdings Corporation (SHLD): $49

Director Eddie S. Lampert acquired 105,650 shares of this retail chain, paying $31.20 per share for a total amount of $3.3 million. Mr. Lampert increased his stake by 0.47% to 22,747,453 shares with this purchase.

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

3. Incyte Corporation (INCY): $17.28

Shares of this drug discovery and development company were acquired by 2 insiders:

• Director Julian Baker acquired 557,864 shares, paying $16.37 per share for a total amount of $9.13 million. These shares were acquired indirectly through Baker Brothers Life Sciences Capital and 14159 Capital, LLC.
• Director Paul A. Brooke acquired 50,000 shares, paying $17.70 per share for a total amount of $884,750. Mr. Brooke increased his stake by 50.00% to 150,000 shares with this purchase.

The FDA approved Incyte’s drug Jakafi (ruxolitinib) for patients with a bone marrow disorder called Myelofibrosis in mid-November. The 17 analysts that follow the company expect it to report revenue of $204.32 million in 2012 (an estimated 125% increase year-over-year) and a loss of 94 cents per share.

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

4. Urstadt Biddle Properties Inc. (UBP): $16.8935

Chairman of the Board and CEO Charles J. Urstadt acquired 32,627 shares of this commercial REIT, paying $16.45 per share for a total amount of $536,714.

These shares were acquired indirectly through Urstadt Property Company, Inc of which Mr. Urstadt is Chairman and a controlling shareholder.

You can view the list of recent insider transactions for Urstadt Biddle Properties Inc. here.

5. Franklin Covey Co. (FC): $8.67

Director Joel Clinton Peterson acquired 21,240 shares of this training and consulting services company, paying $8.25 per share for a total amount of $175,230. Mr. Peterson increased his stake by 9.10% to 254,612 shares with this purchase.

You can view the list of recent insider transactions for Franklin Covey Co. here.

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

Notable Insider Sales:

1. AutoZone Inc. (AZO): $347

Shares of this auto parts retailer were sold by 2 insiders:

• 10% owner Eddie Lampert (of Sears Holdings fame) sold 702,698 shares for $345.98, generating $243.12 million from the sale. 264,952 of these shares were sold directly and the rest were sold indirectly through ESL Investments.

• Director William C. Crowley sold 2,528 shares of this Auto Parts Stores company for $346.03, generating $874,751 from the sale. 870 of these shares were sold directly and the rest were sold indirectly through Tynan, LLC.

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

2. Apollo Group Inc. (APOL): $54.61

Shares of this for-profit education company sold by 2 insiders:

• Executive Chairman of the Board John G. Sperling sold 250,000 shares for $57.09, generating $14.27 million from the sale. There shares were sold indirectly through the John Sperling Revocable Trust.
• Vice Chairman of the Board Peter V. Sperling sold 150,000 shares for $57.26, generating $8.59 million from the sale.

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

3. Monster Beverage Corporation (MNST): $104.52

Shares of this beverages company were sold by 2 insiders:

• Chairman and CEO Rodney C. Sacks sold 187,109 shares for $100.53, generating $18.81 million from the sale.
• Vice Chairman and President Hilton H. Schlosberg sold 157,109 shares for $100.47, generating $15.78 million from the sale.

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

4. Seagate Technology PLC (STX): $20.02

Shares of this data storage products company were sold by 4 insiders:

• Chairman, President and CEO Stephen J. Luczo sold 650,956 shares for $19.99, generating $13.01 million from the sale. 20,000 of these shares were sold as a result of exercising options immediately prior to the sale and the rest were sold indirectly from a trust.
  
• EVP & Chief Technical Officer Robert W. Whitmore sold 50,000 shares for $19.95, generating $997,500 from the sale. These shares were sold as a result of exercising options immediately prior to the sale.
• EVP,General Counsel, CAO Kenneth M. Massaroni sold 20,000 shares for $19.60, generating $392,000 from the sale. These shares were sold as a result of exercising options immediately prior to the sale.
• EVP, Sales and Marketing William D. Mosley sold 20,000 shares for $20.00, generating $400,000 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 Seagate Technology PLC here.

5. SYNNEX Corp. (SNX): $35.9

Shares of this business services provider were sold by 2 insiders:

• Director Matthew Miau sold 304,000 shares for $35.44, generating $10,773,580 from the sale. 20,000 of these shares were sold as a result of exercising options immediately prior to the sale and the rest were sold indirectly through Silver Star Developments and Peer Developments.
• Director Horne James Van sold 3,000 shares for $34.26, generating $102,794 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 SYNNEX Corp. here.

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

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Insider Weekends – January 13, 2012

January 14, 2012 | Insider Buying | Author Asif

Welcome to edition eighty four of Insider Weekends. Insider buying increased with insiders purchasing $88.3 million of their stock last week compared to $33.1 million in the week prior. Selling also increased with insiders selling $368.3 million worth of stock last week compared to $344.5 million in the week prior.

Just as we discussed last week, a majority of this insider buying was driven by 10% owners and hence those purchases are not included in the top 5 insider purchases below. Carl Icahn purchased shares of WebMD (WBMD) following a sharp drop in the stock last week, Sardar Biglari continued adding to his Cracker Barrel (CBRL) position with a $17.5 million purchase and Eddie Lampert picked up $5.93 million worth of Sears Holdings (SHLD) in a direct purchase.

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 4.2. In other words, insiders sold more than 4 times as much stock as they purchased. The Sell/Buy ratio this week compares favorably with the week prior when the ratio stood at 10.4.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 January 13, 2012

Note: As mentioned in the first post in this series Introduction to Insider Weekends, 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. Progress Software Corp. (PRGS): $18.68

Director Philip M. Pead acquired 28,000 shares of this application software company, paying $18.42 per share for a total amount of $515,861. Mr. Pead increased his stake by 193.48% to 42,472 shares with this purchase.

Mr. Pead is the Chairman of the Board of Directors at Allscripts Health Solutions (MDRX) and joined the board of Progress Software in July, 2011. The company has seen both its revenue and earnings decline in recent quarters but trades at an attractive valuation of 6 times EBITDA and sports operating margins of 17.5%.

You can view the list of recent insider transactions for Progress Software Corp. here.

2. Opko Health, Inc. (OPK): $5.05

CEO & Chairman Phillip Frost M.D. acquired 52,500 shares of this medical appliances & equipment company, paying $4.95 per share for a total amount of $259,704. These shares were purchased indirectly through Frost Gamma Investments Trust.

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

3. Unilife Corporation (UNIS): $3.77

Chief Executive Officer Alan Shortall acquired 67,125 shares of this syringe and healthcare equipment manufacturer, paying $3.84 per share for a total amount of $257,431. Mr. Shortall increased his stake by 1.26% to 5,411,893 shares with this purchase.

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

4. Winmark Corp. (WINA): $58.02

Chairman & CEO John L. Morgan acquired 2,802 shares of this retail franchise company, paying $57.08 per share for a total amount of $159,938. Mr. Morgan increased his stake by 0.17% to 1,659,801 shares with this purchase.

Winmark is a very well managed company (ROE of 52%) that sports high operating margins of 48%, has a strong balance sheet with $17.2 million in net cash and investments (quick ratio of 2.06), has posted double digit earnings growth and trades for less than 12 times EBITDA. The articled titled “Winmark Still Hitting the Mark” provide a short history of the company and is well worth a read.

Following the run-up in the stock over the last year, it now trades for a hefty 9 times book value and free cash flow is either low or negative due to high CapEx. The company has been a favorite of mine since I picked it up last January following insider purchases when the stock was trading under $34. I took profits by selling half the position three weeks ago when the stock had appreciated more than 70% from my purchase price. We wrote the following about the company last January,

“Insider purchases at Winmark Corporation, parent of Play It Again Sports and other retail franchises, continue with three insiders picking up shares over a one month period as you can see from this page. Average daily volume for this stock is low so starting or exiting a position may be challenging.”

Voluntary Disclosure: I have a long position in Winmark.

You can view the list of recent insider transactions for Winmark Corp. here.

5. Commercial Metals Company (CMC): $13.22

Shares of this scrap metal recycling company were acquired by 3 insiders:

• Director Rhys J. Best acquired 5,000 shares, paying $13.55 per share for a total amount of $67,738. Mr. Best increased his stake by 100.00% to 10,000 shares with this purchase.
• Senior VP & CFO Barbara Smith acquired 4,000 shares, paying $14.48 per share for a total amount of $57,902.
• Senior VP, General Counsel & Corporate Secretary Ann J. Bruder acquired 500 shares, paying $14.89 per share for a total amount of $7,444. Ms. Bruder increased her stake by 9.09% to 6,000 shares with this purchase.

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

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

Notable Insider Sales:

1. Kadant Inc. (KAI): $23.14

Shares of this paper making equipment manufacturer were sold by 2 insiders:

• Director William A. Rainville sold 200,000 shares for $22.29, generating $4.5 million from the sale.
• Executive Vice President, COO Eric T. Langevin sold 7,500 shares for $22.02, generating $165,150 from the sale.

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

2. Helen of Troy Limited (HELE): $31.65

Chairman, CEO & President Gerald J. Rubin sold 134,791 shares of this consumer products company for $32.20, generating $4.3 million from the sale.

You can view the list of recent insider transactions for Helen of Troy Limited here.

3. Grand Canyon Education, Inc. (LOPE): $18.07

Shares of this for-profit education company were sold by 2 insiders:

• Executive Chairman Brent D. Richardson sold 107,000 shares for $16.31, generating $1.7 million from the sale. These shares were sold indirectly by Exeter Capital, LLC.
• General Counsel Christopher C. Richardson sold 89,000 shares for $16.27, generating $1.4 million from the sale. These shares were sold indirectly by C&H Capital LLC.

You can view the list of recent insider transactions for Grand Canyon Education, Inc. here.

4. Rackspace Hosting, Inc. (RAX): $43.35

Shares of this server and cloud hosting company were sold by 2 insiders:

• President, Cloud Lew Moorman sold 74,750 shares for $41.72, generating $3.1 million from the sale.
• Sr. V.P., GC, and Secretary Alan Schoenbaum sold 52 shares for $42.06, generating $2,187 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 Rackspace Hosting, Inc. here.

5. Novellus Systems, Inc. (NVLS): $42.63

Shares of this semiconductor company were sold by 3 insiders:

• CEO Richard Hill sold 33,407 shares for $44.00, generating $1.5 million from the sale.
• EVP, Semiconductor Sys. Prods. Fusen Ernie Chen sold 25,000 shares for $43.39, generating $1.1 million from the sale. These shares were sold as a result of exercising options immediately prior to the sale.
• VP and Chief Financial Officer John Hertz sold 7,500 shares for $43.00, generating $322,500 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 Novellus Systems, Inc. here.

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

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Insider Weekends – January 6, 2012

January 7, 2012 | Insider Buying | Author Asif

Welcome to edition eighty three of Insider Weekends. Insider buying increased with insiders purchasing $33.1 million of their stock last week compared to $11.03 million in the week prior. Selling declined slightly with insiders selling $344.5 million worth of stock last week compared to $353.4 million in the week prior.

Insider purchases were actually muted last week as is usually the case after the end of a quarter and the start of earnings season. The increase in insider buying was primarily driven by a $21.26 million purchase of Cracker Barrel (CBRL) by 10% owner Sardar Biglari through Biglari Holdings (BH).

We wrote the following about Mr. Biglari last March following his insider purchases of Biglari Holdings,

“Young Mr. Biglari has been considered by some as the next Warren Buffett following his purchase of The Steak n Shake restaurant chain and penchant for activist value investing. He has also come under criticism by many in the value investing community on account of his compensation package and his decision to reverse split the stock twice, resulting in a stock that now has a triple digit price.

This article titled “The Restaurant Investor” (PDF) does a great job of introducing Mr. Biglari while this open letter to Mr. Biglari covers some of the criticism. As you can see from this page, he was actively buying shares last August when the stock was trading below $300.”

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 10.4. In other words, insiders sold more than 10 times as much stock as they purchased. The Sell/Buy ratio this week compares unfavorably with the week prior when the ratio stood at 32.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 January 6, 2012

Note: As mentioned in the first post in this series Introduction to Insider Weekends, 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. Houston American Energy Corp. (HUSA): $12.78

Director John P. Boylan acquired 60,000 shares of this oil & gas exploration company, paying $12.91 per share for a total amount of $774,780.

You can view the list of recent insider transactions for Houston American Energy Corp. here.

2. Unilife Corporation (UNIS): $3.58

Chief Executive Officer Alan Shortall acquired 150,000 shares of this syringe and healthcare equipment manufacturer, paying $3.67 per share for a total amount of $549,988. Mr. Shortall increased his stake by 2.89% to 5,344,768 shares with this purchase.

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

3. Opko Health, Inc. (OPK): $4.9

CEO & Chairman Phillip Frost M.D. acquired 40,000 shares of this medical appliances & equipment company, paying $4.86 per share for a total amount of $194,399. These shares were purchased indirectly by Frost Gamma Investments Trust.

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

4. Kronos Worldwide Inc. (KRO): $21.7

Chairman of the Board Harold C. Simmons acquired 10,000 shares of this titanium dioxide producer, paying $18.00 per share for a total amount of $179,961. These shares were purchased indirectly by Mr. Simmons’s spouse.

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

5. Enstar Group Limited (ESGR): $96.19

Director Robert J. Campbell acquired 1,500 shares of this holding company for insurance and reinsurance companies, paying $98.94 per share for a total amount of $148,410. These shares were purchased indirectly by Mr. Campbell’s self-directed pension plan.

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

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

Notable Insider Sales:

1. Apollo Group Inc. (APOL): $56.64

Shares of this for-profit education company were sold by 2 insiders:

• Executive Chairman of the Board John G. Sperling sold 60,000 shares for $53.37, generating $3.2 million from the sale. These shares were sold indirectly through a trust.
• Vice Chairman of the Board Peter V. Sperling sold 30,000 shares for $53.37, generating $1.6 million from the sale.

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

2. Body Central Corp. (BODY): $23.15

Shares of this apparel chain were sold by 3 insiders:

• Director Scott Gallin sold 110,777 shares for $23.65, generating $2.6 million from the sale. These shares were sold indirectly by PineBridge Investments LLC.
• Director Jerrold Rosenbaum sold 20,778 shares for $23.99, generating $498,486 from the sale.
• EVP & Chief Merchandising Ofcr Beth Angelo sold 12,987 shares for $23.99, generating $311,572 from the sale.

You can view the list of recent insider transactions for Body Central Corp. here.

3. Biogen Idec Inc. (BIIB): $115.5

Shares of this biotech company were sold by 2 insiders:

• Executive VP and CFO Paul J. Clancy sold 20,244 shares for $112.35, generating $2.3 million from the sale.
• Director Nancy Leaming sold 4,000 shares for $114.00, generating $456,000 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 Biogen Idec Inc. here.

4. Fastenal Company (FAST): $45.21

Director Stephen M. Slaggie sold 50,000 shares of this industrial and construction materials retailer for $44.02, generating $2.2 million from the sale.

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

5. Jabil Circuit Inc. (JBL): $20.87

Shares of this electronic manufacturing services provider were sold by 3 insiders:

• Director William D. Morean sold 79,100 shares for $19.99, generating $1.6 million from the sale. 38,400 of these shares were sold indirectly by the William E. Morean Residual Trust and 2,300 shares were sold indirectly by the Eagle’s Wing Foundation.
• Chief Operating Officer Mark T. Mondello sold 15,000 shares for $20.18, generating $302,692 from the sale.
• Director Lawrence J. Murphy sold 7,000 shares for $20.19, generating $141,365 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 Jabil Circuit Inc. here.

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

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Insider Weekends – December 30, 2011

December 31, 2011 | Insider Buying | Author Asif

Happy New Year and welcome to edition eighty two of Insider Weekends. Insider buying decreased with insiders purchasing $11.03 million of their stock last week compared to $58.41 million in the week prior. Selling also decreased with insiders selling $353.4 million worth of stock last week compared to $1.06 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 went up to 32. In other words, insiders sold 32 times as much stock as they purchased. The Sell/Buy ratio this week compares unfavorably with the week prior when the ratio stood at 18.11.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 December 30, 2011

Note: As mentioned in the first post in this series Introduction to Insider Weekends, 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. Chimera Investment Corporation (CIM): $2.51

Shares of this mortgage REIT were acquired by 3 insiders:

• Director Gerard Creagh acquired 119,252 shares, paying $3.92 per share for a total amount of $467,750. Mr. Creagh increased his stake by 161.41% to 193,134 shares with this purchase. 100,000 of Mr. Creagh’s shares were acquired in February and the filing for that portion is late.
• Director Paul A. Keenan acquired 19,526 shares, paying $2.74 per share for a total amount of $53,501. Mr. Keenan increased his stake by 23.87% to 101,321 shares with this purchase.
• Director John Patrick Reilly acquired 19,070 shares, paying $2.74 per share for a total amount of $52,252. Mr. Reilly increased his stake by 30.60% to 81,391 shares with this purchase.

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

2. Kronos Worldwide Inc. (KRO): $18.04

Chairman of the Board Harold C. Simmons acquired 25,000 shares of this titanium dioxide producer, paying $17.85 per share for a total amount of $446,216. Mr. Simmons increased his stake by 4.82% to 543,440 shares with this purchase.

We have covered Mr. Simmons’ purchases of Kronos, Valhi (VHI), NL Industries (NL) and a host of other companies several times in the past. Following one of his purchases in September, we wrote the following,

“We see several purchases by Mr. Simmons almost on a daily basis but most of these purchases are indirect purchases through one of several companies that he either owns a stake in or serves as the Chairman of the Board. You can see his insider transactions across all these companies here.

This particular purchase is more personal and appears to be sizable until you consider that the 79 year old Mr. Simmons has an estimated net worth of $5.7 billion. For a less flattering profile of Harold Simmons check out this article titled “Harold Simmons Is Dallas’ Most Evil Genius“. The stock is down more than 35% over the last two months and appears to be reasonably valued at 7 times EBITDA.”

The stock has gotten even cheaper since then and now trades for less than 5 times EBITDA and sports a dividend yield of 3.3%.

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

3. Fastenal Company (FAST): $43.61

Executive Vice-President Nicholas J. Lundquist acquired 10,000 shares of this industrial and construction materials company, paying $43.30 per share for a total amount of $433,050. Mr. Lundquist increased his stake by 9.01% to 121,000 shares with this purchase.

Fastenal has seen its business improve to near pre-recession levels and has posted several quarters of top line as well as bottom line growth. Operating margins of over 20% are impressive given the type of business the company engages in.

The balance sheet is very strong with a current ratio of 5.56, no debt and $137 million in cash and investments. Their growth has not gone unnoticed and the stock trades very close to its 52 week high and also sports a very rich valuation. The company trades at nearly 22 times EBITDA and over 9 times book value.

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

4. NII Holdings Inc. (NIHD): $21.3

President, Nextel Argentina Ruben Butvilofsky acquired 15,275 shares of this wireless communications company, paying $20.89 per share for a total amount of $319,059. Mr. Butvilofsky increased his stake by 92.28% to 31,828 shares with this purchase.

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

5. Esterline Technologies Corp. (ESL): $55.97

President & CEO Richard Bradley Lawrence acquired 3,960 shares of this aerospace products company , paying $56.03 per share for a total amount of $221,882. Mr. Lawrence increased his stake by 284.69% to 5,351 shares with this purchase.

Voluntary Disclosure: I have a long position in Esterline in my trading portfolio.

You can view the list of recent insider transactions for Esterline Technologies Corp. here.

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

Notable Insider Sales:

1. Franklin Resources Inc. (BEN): $96.06

Vice Chairman Rupert H. Johnson sold 200,000 shares of this asset management company for $95.40, generating $19.08 million from the sale. These shares were sold indirectly from an IRA.

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

2. Carnival Corporation (CCL): $32.64

Shares of this cruise ship operator were sold by 7 insiders:

• Vice Chairman & COO Howard S. Frank sold 124,603 shares for $33.16, generating $4.1 million from the sale.
• President & CEO, HAL Stein Kruse sold 35,601 shares for $32.72, generating $1.2 million from the sale.
• Sr. Vice President-Finance,CFO David Bernstein sold 17,800 shares for $32.72, generating $582,425 from the sale.
• SVP, Gen Counsel & Secretary Arnaldo Perez sold 17,800 shares for $32.72, generating $582,425 from the sale.
• President & CEO – PCL Alan Buckelew sold 11,920 shares for $32.72, generating $390,028 from the sale.
• President & CEO, CCL Gerald Raymond Cahill sold 8,120 shares for $32.64, generating $265,048 from the sale.
• Chief Accounting Officer Larry R. Freedman sold 2,431 shares for $32.72, generating $79,544 from the sale.

These shares were sold upon the vesting of restricted stock granted under the Company’s 2002 Stock Plan.

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

3. Ventas, Inc. (VTR): $55.13

Director Douglas M. Pasquale sold 58,750 shares of this healthcare REIT for $55.04, generating $3.23 million from the sale.

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

4. Yahoo! Inc. (YHOO): $16.13

Chief Yahoo David Filo sold 166,500 shares of this internet media company for $16.14, generating $2.69 million from the sale. These shares were sold indirectly through a trust.

Voluntary Disclosure: I have a long position in Yahoo.

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

5. Lululemon Athletica Inc. (LULU): $46.66

Founder, Chairman of the Board and Chief Innovation and Branding Officer Dennis J. Wilson sold 50,000 shares of this yoga and athletic apparel company for $47.81, generating $2.39 million from the sale.

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

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

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