12-month performance: -5% Insider activity: Bullish Buying pattern: Purchases from multiple insiders including CFO and Chairman Recent news: Good full-year results
Adesso is a German IT service provider that specialises in developing customised software solutions. Operating across a wide range of industries, the group provides business consulting, IT management and consulting, and software development solutions. The company is listed on the XETRA and currently has a market capitalisation of €307 million.
Adesso issued an excellent set of full-year results in late March. For FY2019, sales increased 20% to €450 million, while EBITDA increased 46% to €48 million. In relation to Covid-19, the company advised that it had seen no significant impact on its business, however, it said that it was implementing all available measures to cushion the resulting risks to its business in 2020. It also said that the current situation demonstrates the importance of companies and organisations becoming more digital, and that this might increase demand for its services in the future.
Source: 2iQ Research
Looking at insider transaction activity here, we think it’s interesting that four insiders purchased shares in April. Those buying included CFO Joerg Schroeder, two members of the Executive Board, and a member of the Supervisory Board. Chairman Volker Gruhn also purchased a significant number of shares on 31 March. Overall, this represented the largest amount of insider buying in more than two years. In our view, this is a bullish signal. It indicates that insiders are confident about the future and that, looking ahead, they expect the share price to rise.
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