Ashland Global Holdings (ASH: US)
12-month performance: +2%
Insider activity: Bullish
Buying pattern: Large purchase from CEO
Recent news: Mixed Q1 results
Ashland Global Holdings is a specialty chemicals and ingredients company. Operating in more than 100 countries, the group serves customers across a wide range of consumer and industrial markets, including the food and beverage, personal care, energy, and construction markets. The company is listed on the New York Stock Exchange and currently has a market capitalisation of $4.9 billion.
Ashland Global Holdings issued a mixed set of first-quarter results in late January. While sales for the quarter were down 7% on the same period last year to $533 million due to weaker demand in consumer end markets and industrial end markets, net income for the quarter was $32 million compared to a loss of $48 million in the prior-year quarter. The group advised that action that it is taking internally, and less global uncertainty in the coming quarters should help it steadily improve results during the fiscal 2020 year.
Source: 2iQ Research
What looks interesting here is that on 6 February, Ashland Chairman and CEO Guillermo Novo purchased 12,900 shares in the company, spending $1.0 million on stock. This was Novo’s first purchase of Ashland shares and the first insider purchase for over two years. In our view, this is a bullish signal, as Novo is likely to have a good understanding of the company’s near-term prospects. Given this substantial insider purchase, we think Ashland Global Holdings is worth a closer look right now.