La Doria Spa (LD: IM)
12-month performance: +19%
Insider activity: Bullish
Buying pattern: Purchases from Chairman/CEO and CFO
Recent news: Solid full-year results
La Doria Spa is an Italian company that is engaged in the production of food products. The group is the number one producer of preserved vegetables, chopped tomatoes, and private label pasta sauces in Italy, and the number two producer of fruit juices. The company is listed on the Borsa Italiana and currently has a market capitalisation of €300 million.
La Doria issued a relatively solid set of FY2019 results in March. For the year, revenue came in at €718 million, 4% higher than the year before, while EBITDA rose to €56 million, up 6%. Looking ahead, the group expects revenue of €732 million for 2020. In relation to the coronavirus, the company said that it had introduced specific measures to reduce the contagion risk for its employees and to ensure the continuity of company operations. It also said that it was responding to “demand peaks” from both Italian and overseas customers in the wake of the pandemic.
What stands out to us about La Doria is that in April, both Chairman and Chief Executive Officer Antonio Ferraioli and CFO Alberto Festa purchased shares in the company. Festa acquired 4,000 shares on 1 April (after buying 12,000 shares in mid-March) while Ferraioli purchased 8,000 shares on 20 April and 2,000 shares on 23 April. Combined, this represented the largest amount of insider buying in over two years. Given that these two insiders are likely to have a good understanding of the company’s recent performance and its future prospects, we view this buying activity as a bullish signal. With two top insiders going long, we think the outlook for the stock is favourable.