2iQ Insider Brief: James Fisher and Sons PLC (FSJ: LN) Compass Diversified Holdings (CODI: US) China Zheshang Bank Co Ltd (2016: HK)

Kaloyan Kolev 16 January 2020

James Fisher and Sons PLC (FSJ: LN)

 12-month performance: +7%
Insider activity: Bullish
Buying pattern: Purchases from CEO
Recent news: Encouraging trading statement

 

 

James Fisher and Sons is a UK-based service provider to the marine and energy industries. The group operates through four divisions: Marine Support, Offshore Oil, Specialist Technical, and Tankships. The company is listed on the London Stock Exchange and currently has a market capitalisation of £998 million.

In late November, James Fisher and Sons issued an encouraging trading statement.  Advising that trading in its Offshore Oil and Tankships divisions was “well ahead” of the prior year comparative, the group said that profit before tax for the full year is expected to be ahead of last year, and that the board believes that its marine service strategy will continue to provide future growth for shareholders.

FSJ_LN

Source: 2iQ Research

What looks interesting here is that Eoghan O’Lionaird, who was appointed as CEO at the beginning of October, has purchased shares in the company twice in the last six weeks. On 28 November, the insider made his first purchase, acquiring 1,585 shares, while on 30 December, he added another 4,878 shares, quadrupling his holding. These purchases suggest that O’Lionaird is confident in relation to the outlook for the company. With that in mind, we think the stock is worth a closer look right now.

 

Compass Diversified Holdings (CODI: US)

 12-month performance: +68%
Insider activity: Bullish
Buying pattern: Purchases from multiple directors including Chairman
Recent news: Solid Q3 results

 

 

Compass Diversified Holdings is an investment holding company that acquires controlling interests in profitable middle market businesses that operate in niche industries. Partnering with management teams, the group provides its businesses with both strategic and financial support. The company is listed on the New York Stock Exchange and currently has a market capitalisation of $1.5 billion.

 

Compass Diversified Holdings shares have had a good run over the last year, rising nearly 70%. The stock has been boosted by solid quarterly results as well as a number of broker price target upgrades. Last month, analysts at Jefferies raised their price target for the stock from $23 to $26.

CODI_USSource: 2iQ Research

Looking at insider transaction activity, we think Compass Diversified Holdings shares could be set for further gains. We say this because since the beginning of the year six separate directors, including Chairman Sean Day, have purchased shares in the company. Combined, the insiders have spent over $600,000 on stock. We see this pattern of buying as a bullish signal. With multiple insiders backing the shares to continue rising, we think the outlook for Compass Diversified Holdings is favourable.

 

China Zheshang Bank Co Ltd (2016: HK)

 12-month performance: -3%
Insider activity: Bullish
Buying pattern: Purchases from multiple directors including Chairman
Recent news: Good Q3 results

 

 

China Zheshang Bank is a joint-stock commercial bank based in the People’s Republic of China. The bank offers retail banking, corporate banking, and treasury business services. The company is listed on both the Hong Kong Stock Exchange and the Shanghai Stock Exchange and currently has a market capitalisation of HKD $192 billion.

 

China Zheshang Bank issued a solid third-quarter update in late October. For the nine-month period ended 30 September 2019, operating income rose 25% on the year before, while net profit increased 15%. However, despite this growth, the stock has gone nowhere over the last year due to trade war uncertainty and concerns over the health of China's banking sector after regulators seized control of Baoshang Bank in May, citing serious credit risks.

206_HKSource: 2iQ Research

Examining insider transaction activity, we think China Zheshang Bank shares look interesting right now. We say this because so far this month six directors have purchased shares in the bank, including the Chairman of the Supervisory Board, the Chairman of the Management Board, and the Company Secretary. Given that these insiders are likely to have a good understanding of the bank’s future prospects, we see this buying pattern as bullish. 

 

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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