Insider Trading Report Edition 306: Notable Buys And Sales

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

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.
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Disclosure: Clients of Signal Partners, LLC  and I may have positions in ...

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