2iQ Insider Brief: Fresenius Medical Care AG(FME GR) Fastighets AB Trianon(TRIANB SS) Columbia Financial (CLBK US)

Kaloyan Kolev 19 March 2019

Fresenius Medical Care AG&CO (FME: GR) 

12-month performance: -15%
Insider activity: Bullish
Buying pattern: Purchases from multiple directors including CEO and CFO
Recent news: Profit warning

 

Fresenius Medical Care is a leading provider of kidney dialysis products and services. The company operates 42 production sites across the world and also has a global network of more than 3,900 dialysis clinics. The stock is listed on the XETRA and currently has a market capitalisation of €27.3 billion.

 

Fresenius Medical shares have experienced significant weakness over the last six months after the group announced back-to-back profit warnings late last year. In October, the shares crashed after the company cut its earnings target for 2018, citing slower growth in dialysis services in North America, and then in December, the stock fell sharply again after the company advised that it was expecting no net profit growth for 2019. However, after falling from above €90 in early October to just €55 in early January, the shares have bounced back to around the €70 mark recently, after the group announced a €1 billion share buyback in February and advised that it expects profits to grow faster than sales from 2020 onwards. Year to date, the shares are now up around 23%. Could the stock offer further upside from current levels?

 FRESENIUS_MEDICAL

Source: 2iQ Research

Looking at recent insider transaction activity, we think the current uptrend could have further to run. We say this because since late February, six top-level directors have purchased shares in the company, which we interpret as a bullish signal as it suggests these directors see upside potential in the stock. Those buying have included CEO Rice Powell, who has spent over USD $600,000 on stock, and CFO Michael Brosnan, who made a purchase of around USD $320,000, as well as three members of the Executive Board. With six key insiders making large purchases in the last few weeks, we think the stock looks interesting from a medium-term view.

 

Fastighets AB Trianon (TRIANB: SS) 

12-month performance: +37%
Insider activity: Bullish
Buying pattern: Purchases from multiple directors including CEO, CFO, and Chairman
Recent news: Good Q4 results

 

Fastighets AB Trianon is a Swedish property company that acquires, develops and builds residential and commercial premises in the city of Malmo. In total, the company owns more than 40 properties. The stock is listed on the OMX Nordic Exchange Stockholm and currently has a market capitalisation of SEK 2.6 billion. 

Shares in Fastighets AB Trianon have surged nearly 20% in the last three weeks, after the group reported strong Q4 numbers in late February. For the quarter, rental income was up 26% to SEK 92.8 million, while profit from property management increased 9% on the year before. Since listing in mid-2017, the group has now reported seven consecutive quarters of rental income growth.

 Source: 2iQ Research

Source: 2iq Research

While Fastighets AB Trianon’s share price is up nearly 40% over the last year, we think the outlook for the stock continues to look favourable. We say this because since early March, five key insiders have purchased shares in the company, which we view as a positive development. Those buying have included CEO Olof Andersson, CFO Mari-Louise Hedbys, and Chairman Mats Cederholm, who all made significant purchases. With five top-tier directors buying at higher levels, we believe the stock has the potential to keep rising.

 

Columbia Financial (CLBK: US)

 12-month performance: N/A
Insider activity: Bullish
Buying pattern: Purchases from multiple directors including CEO, CFO, and COO
Recent news: Solid Q4 results

 

Columbia Financial, Inc. is the holding company for Columbia Bank – a federally chartered stock savings bank that has served the residents and businesses of New Jersey since 1927. Through 50 full-service branch offices, the bank offers a broad range of financial services including personal banking, business banking, lending solutions and wealth management. The stock is listed on the NASDAQ Global Select Market and currently has a market capitalisation of USD $1.9 billion.

Columbia Financial shares enjoyed a strong run immediately after the company’s IPO in April 2018. The stock began trading at a price of $15.31, 53% above its IPO price of $10, and over the next month, continued to climb to nearly $18. However, since then, the stock has pulled back and currently trades for around $16. With the group recently reporting net income of USD $14.9 million for the quarter ended December 31, 2018, compared to net income of $3.7 million for the same period the year before, could now be a good time to take a closer look at the stock? 

 Columbia Financial

Source: 2iQ Research

Analysing recent insider transaction activity, we think the stock looks interesting right now. This is due to the fact that since early March, we have observed purchases from six top-level directors. Those buying have included President/CEO Thomas Kemly, CFO Dennis Gibney, and COO Edward Allen, who have all made significant purchases. With six key insiders loading up on shares after the recent Q4 results, we think the stock has the potential to move higher.

Disclaimer: Neither 2iQ Research GmbH nor its content providers are responsible for any damages or losses arising from any use of this information.

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