Davide Campari Spa (CPR: IM)
12-month performance: -20%
Insider activity: Bullish
Buying pattern: Buying from multiple insiders including CEO and CFO
Recent news: Raised dividend by 10%
Davide Campari is an Italian company that operates in the alcoholic and non-alcoholic beverage industries. It produces spirits, wines, and soft drinks, and its brands include Campari, Aperol, Wild Turkey, and SKYY Vodka. The company is listed on the Borsa Italiana and currently has a market capitalisation of €8.0 billion.
The alcoholic beverages sector is certainly going to be impacted by the coronavirus in the short term. With bars, pubs, and nightclubs around the world closing, and many events being cancelled, global demand for alcohol is likely to soften. However, the setback for alcoholic beverages companies should be temporary. Eventually, things will go back to normal (analysts at Berenberg predict we’ll see a ‘new normal’ by Q4) and demand will pick up again.
Looking at insider transaction activity, we think it’s interesting that three insiders have been loading up on CPR shares recently as the share price has fallen. Since late February, CEO Robert Kunze-Concewitz and CFO Paolo Marchsini have purchased shares, as has board member Eugenio Barcellona. Combined these insiders have spent around €1.75 million on stock, which represents the largest amount of insider buying activity in more than two years. In our view, this is a bullish signal.