12-month performance: +30% Insider activity: Bullish Insider buying pattern: Purchases from Chairman/CEO and CFO Recent news: Strong Q1 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 €324 million.
We last covered La Doria in early May. At the time, both Chairman and CEO Antonio Ferraioli and CFO Alberto Festa had just purchased shares in the company. We viewed this pattern of insider buying as a bullish signal. Since then, the stock has risen. One driver of the recent share price strength has been the company’s Q1 results, which were stronger than the company’s Q1 results in 2019 and ahead of expectations. For the quarter, revenue was up 16%, while EBITDA increased 39%.
Source: 2iQ Research
What stands out to us here is that in the last few weeks, both the Chairman/CEO and CFO have been buying more shares. Between 16 July and 21 July, Ferraioli purchased 4,594 LD shares, spending approximately €48,000 on stock, while Festa purchased 9,000 LD shares, spending roughly €99,000 on stock. We see these insider purchases as a positive development as these top-level executives are likely to have an excellent understanding of La Doria’s near-term prospects. Given this pattern of insider buying, we think the outlook here remains favourable.
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