Insider Trading Report Edition #228: Notable Buys And Sales

Welcome to edition 228 of Insider Weekends. Insider buying increased last week with insiders buying $63.4 million of stock compared to $56.48 million in the week prior. Selling also increased significantly with insiders selling $1.51 billion of stock last week compared to $393.38 million in the week prior. More than a third of the selling was driven by sales of Microsoft by Bill Gates.

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 23.88. In other words, insiders sold  almost 24 times as much stock as they purchased. The Sell/Buy ratio this week compares unfavorably with the prior week, when the ratio stood at 6.96. 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 October 31, 2014

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. AGCO Corporation (AGCO): $44.31

Director Mallika Srinivasan acquired 45,000 shares of this farm & construction machinery company, paying $45.21 per share for a total amount of $2.03 million. These shares were purchased indirectly by Chennai, India based TAFE Motors and Tractors Limited.

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

P/E: 9.03 Forward P/E: 13.35 Industry P/E: 14.79
P/S: 0.41 Price/Book: 1.09 EV/EBITDA: 5.18
Market Cap: $4.14B Avg. Daily Volume: 1,513,800 52 Week Range: $41.83 – $61.39

2. The Dow Chemical Company (DOW): $49.4

Director Paul Polman acquired 21,500 shares of this chemical company, paying $46.56 per share for a total amount of $1 million. Mr. Polman increased his stake by 111.86% to 40,720 shares with this purchase.

You can view the list of recent insider transactions for The Dow Chemical Company here.

P/E: 16.22 Forward P/E: 14.36 Industry P/E: 17.07
P/S: 0.97 Price/Book: 2.59 EV/EBITDA: 8.98
Market Cap: $57.66B Avg. Daily Volume: 10,095,400 52 Week Range: $38.16 – $54.97
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Disclosure: None.

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