Insider Buying

2 Stocks That Have Seen Big Cluster Buying Recently

featured image
Lindab International AB
LIAB:SS
12 months:
+112%
Activity:
Bullish
Pattern:
Purchase from Chairman of the Board and Directors
News:
Q1 results
Rev Group Inc
REVG:US
12 months:
+143%
Activity:
Bullish
Pattern:
Purchases from four insiders including CEO and CFO
News:
Strong Q2 results
Lindab International AB
LIAB:SS
12 months:
+112%
Activity:
Bullish
Pattern:
Purchase from Chairman of the Board and Directors
News:
Q1 results
Rev Group Inc
REVG:US
12 months:
+143%
Activity:
Bullish
Pattern:
Purchases from four insiders including CEO and CFO
News:
Strong Q2 results

Another month, another selection of companies that have experienced significant insider buying clusters.

When insiders buy company stock together in large quantities (i.e. cluster buying), it is almost always considered a bullish sign and here at 2iQ we regularly share interesting examples. For example, last month Emclaire Financial Corp (EMCF:US), Horizon Global Corporation (HZN:US) and Taaleri Oyj (TAALA:FH) were covered in our monthly round-up.

This time around, we have Swedish manufacturer Lindab International AB (LIAB:SS) and Rev Group Inc (REVG:US), both of which have caught our analysts’ attention because of the size of their clusters.

Lindab International AB (LIAB:SS)

Lindab International - a Swedish manufacturer - specializes in ventilation solutions. As our report highlighted in early June 2021, this example stood out to us because of the large number of insiders who purchased company stock at the same time.

  • Seven insiders bought LIAB stock worth SEK 3.1 million (or $380,000) in May
  • Chairman of the board Peter Nilsson made the largest of these purchases, buying 11,000 shares for around SEK 2 million ($245,000)

What else happened at Lindab International? The company increased its operating profit from SEK 184 million in Q1 2020 to 193 million in Q1 2021. Its operating margins also increased from 7.9% to 8.6% during the same period.

Rev Group Inc (REVG:US)

Rev designs, manufacturers, and distributes specialty vehicles in the US. The company is currently listed on the NYSE with a market capitalization of $1.1 billion.

2iQ’s insider transaction data shows that four insiders bought a substantial amount of REVG stock on 11th June 2021:

  • Chief Executive Rod Rushing bought 19,292 shares at $15.87 per share
  • CFO Mark Skonieczny bought 7,000 shares at the price of $15.90 per share
  • General Counsel Stephen Boettinger purchased 1,500 shares for $15.64 per share
  • Chief Human Resources Officer Chris Daniels bought 3,200 shares for $15.79 per share

In all, these insiders spent around $190,000 on REVG stock.

Rev Group also posted encouraging results for the first quarter of 2021. Net sales for the quarter totaled $643.6 million, representing a 18% year-on-year increase. Adjusted EBITDA rose to an impressive $45.5 million in Q1 2021, compared to the $7.6 million reported in Q1 2020.

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