Ingevity (NGVT: US)
12-month performance: -32%
Insider activity: Bullish
Buying pattern: Purchases from CEO and CFO
Recent news: Solid Q4 results
Ingevity is a specialty chemicals and materials manufacturer and supplier. Its products are used in a variety of demanding applications, including oil exploration and production, asphalt paving, and the manufacturing of automotive components that reduce emissions. The company is listed on the New York Stock Exchange and currently has a market capitalisation of $2.8 billion.
Ingevity shares have underperformed year to date, primarily due to the drop in oil prices and concerns over growth in industrial markets. However, management appears to be confident about the future. “Despite challenging global macroeconomic conditions, we will deliver strong results in 2020,” said President and CEO Michael Wilson earlier this month. Full-year 2019 results, issued on 3 February, showed sales growth of 14.1% and adjusted earnings growth of 18.8% for the year.
Source: 2iQ Research
Examining insider transaction activity, we like the fact that Wilson has backed up his statement by adding to his personal holding in the company. Our records show that on 6 February, the insider purchased another 7,500 shares at a price of $64.44, boosting his holding by a little over 10%. We also like the fact that CFO John Fortson purchased stock on the same day, adding another 2,290 shares to his holding. Interestingly, these were the first insider purchases in over two years. Given that these top-tier directors are likely to have a good read on the company’s prospects for 2020, we see this buying activity as bullish.