Welcome to edition 281 of Insider Weekends. Insider buying dropped significantly last week with insiders buying $39.44 million of stock compared to $122.24 million in the week prior. Selling remained unchanged with insiders selling $1.36 billion of stock last week.

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 34.56. In other words, insiders sold almost 35 times as much stock as they purchased. The Sell/Buy ratio this week compares unfavorably with the prior week, when the ratio stood at 11.14. 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.

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. Healthways Inc. (HWAY): $12.38

Shares of this personalized health services provider were acquired by 5 insiders:

  • Director Conan Laughlin acquired 350,000 shares, paying $11.51 per share for a total amount of $4.03 million. These shares were purchased indirectly through a fund.
  • Director Robert J. Greczyn Jr. acquired 11,000 shares, paying $11.40 per share for a total amount of $125,380. Mr. Greczyn increased his stake by 177.33% to 17,203 shares with this purchase.
  • President and CEO Donato Tramuto acquired 8,740 shares, paying $11.47 per share for a total amount of $100,248. Mr. Tramuto increased his stake by 2.96% to 304,186 shares with this purchase.
  • Director Mary Jane England acquired 4,401 shares, paying $11.38 per share for a total amount of $50,083. Ms. England increased her stake by 14.62% to 34,509 shares with this purchase.
  • Director Lee Shapiro acquired 4,359 shares, paying $11.42 per share for a total amount of $49,780. Mr. Shapiro increased his stake by 70.27% to 10,562 shares with this purchase.

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

    P/E: N/A Forward P/E: 53.83 Industry P/E: 30.97 P/S: 0.56 Price/Book: 1.49 EV/EBITDA: 13.45 Market Cap: $445.96M Avg. Daily Volume: 369,894 52 Week Range: $9.93 – $23.3

    2. Olin Corp. (OLN): $20.36

    Shares of this specialty chemicals company were acquired by 9 insiders:

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