Welcome to edition 504 of Insider Weekends. Insider buying decreased last week with insiders purchasing $100.09 million of stock compared to $177.87 million in the week prior. Selling also decreased with insiders selling $1.22 billion of stock last week compared to $5.4 million in the week prior. The prior week’s numbers included the huge $4.06 billion sale of Amazon.com (AMZN) by Jeff Bezos.
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 12.16. In other words, insiders sold almost more than 12 times as much stock as they purchased. The Sell/Buy ratio this week compares unfavorably with the prior week, when the ratio stood at 30.37.
MaNote: 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.