Insider Weekends - Edition 314

Insider buying increased last week with insiders buying $124.52 million of stock compared to $81.74 million in the week prior. Selling decreased with insiders selling $462.5 million of stock last week compared to $1.15 billion in the week prior.

Nearly 80% of the insider buying last week was related to the 10% owner and Singapore based investment company Shanda Group increasing their stake in Lending Club (LC) after the big drop in the company’s shares in April that eventually led to the CEO resigning.

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 3.71. In other words, insiders sold  almost 4 times as much stock as they purchased. The Sell/Buy ratio this week compares favorably with the prior week, when the ratio stood at 14.06. 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 June 24, 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. Applied Optoelectronics, Inc. (AAOI): $9.82

Director Alan D. Moore acquired 105,000 shares of this fiber-optic networking products provider, paying $10.08 per share for a total amount of $1.06 million. Mr. Moore increased his stake by 89.33% to 222,542 shares with this purchase.

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

P/E: 16.53 Forward P/E: 8.69 Industry P/E: 27.01
P/S: 0.85 Price/Book: 1.08 EV/EBITDA: 8.9
Market Cap: $167.70M Avg. Daily Volume: 499,444 52 Week Range: $8.08 – $22.79

2. TICC Capital Corp. (TICC): $5.18

Shares of this business development company were acquired by 3 insiders:

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

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