12-month performance: -10% Insider activity: Bullish Buying pattern: Large purchases from CEO and parent company Recent news: Lowered revenue guidance
Dassault Systemes is a French software company that specialises in three-dimensional (3D) solutions. Its product, 3DEXPERIENCE, is a business experience platform that is used by businesses across a wide range of industries including aerospace and defence, transportation, life sciences, energy and materials, consumer goods, retail, and construction. The company is listed on the Euronext - Paris and currently has a market capitalisation of €32 billion.
Dassault Systemes recently warned that, as a result of the coronavirus pandemic, Q1 revenue could be well below the low end of its former guidance. Previously, the group advised that it was expecting revenue growth of 20% to 23% for the first quarter, however, now it expects growth of around 14% to 17%. Yet the company also advised that 84% of its software revenue is recurring, and said that, thanks to remote connections, it can maintain the service and support that its customers need during these difficult times.
Source: 2iQ Research
Examining insider transaction activity at Dassault Systemes, we think it’s interesting that there has been a large amount of insider buying recently. In March, Founder and Chairman Charles Edelstenne purchased €5 million worth of stock, while parent company Dassault Group and managing Director Laurent Dassault spent a total of more than €13 million on shares. It’s also worth noting that in the second half of February, Dassault Group sold a large number of put options on the stock. This indicates that the parent company expects the stock to rise in the future. Overall, we see this insider transaction activity as bullish.
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