12-month performance: -31% Insider activity: Bullish Buying pattern: Purchases from two insiders including CEO Recent news: Poor Q1 results
AZZ is a global provider of metal coatings services, welding solutions, specialty electrical equipment, and highly engineered services. Providing its services to the power generation, transmission, and industrial markets, the company helps to build and maintain critical infrastructure. It is listed on the New York Stock Exchange and currently has a market capitalisation of $829 million.
AZZ has faced significant disruption from Covid-19. For the first quarter of fiscal 2021 ended 31 May 2020, revenue was down 26% on last year to $213.3 million while net income was down 74% to $5.5 million. Looking ahead, however, the company appears to be relatively optimistic about the second half of fiscal 2021. “Although it is still early, we are optimistic for an improved second half of the year as we are seeing more quoting activity for turnarounds,” the company said on 9 July.
Source: 2iQ Research
What looks interesting here is the fact that President and CEO Thomas Ferguson purchased 10,000 AZZ shares at a price of $28.94 per share on 14 July. This purchase, which cost the insider just under $300,000 and boosted his personal holding by approximately 10%, suggests he is confident about the future. It’s also worth noting that on 15 July, Ken Lavelle, President and General Manager of the group’s Electrical Platform purchased 5,500 shares at a price of $30.83 per share. This purchase, which cost the insider a total of $170,000, increased the size of his holding by 115%. We see this insider transaction activity as a bullish signal. It suggests that these top-level insiders expect the stock to rise.
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