Insider Buying

2iQ Insider Brief: Flatex AG (FTK: GR)

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Flatex AG (FTK: GR)

12-month performance: +116%
Insider activity: Bullish
Buying pattern: Purchases from multiple insiders including Chairman/CEO and CFO
Recent news: Strong Q1 results

Flatex AG is a German FinTech company. Specialising in securities trading and transaction processing, its goal is to build Europe’s largest provider of financial technology. The company is listed on the XETRA and currently has a market capitalisation of €760 million.

We last covered Flatex in early January when the stock was trading near €25. At the time, the company had just acquired European brokerage firm Degiro and we noticed that multiple insiders were buying stock, which we said was a bullish signal. Fast forward to today, and FTK now trades at €39, after the company just had its best quarter ever. That represents a gain of 56% since we covered the stock in January. As is often the case, insiders here timed their purchases well.

flatex ag chart                     Source: 2iQ Research

Looking at recent insider transaction activity, we think Flatex has the potential to continue outperforming. We say this because insiders have been buying again recently. Indeed, since the start of June, seven insiders – including Chairman and CEO Frank Niehage, CFO Muhamad Chahrour, and multiple members of the Executive Committee – have purchased FTK shares. Combined, these insiders have spent nearly €1 million on stock, which represents the largest amount of insider buying in a quarter in over two years. We view this pattern of cluster buying – where multiple insiders are buying within a short period of time – as a bullish signal.