2iQ Insider Brief: LafargeHolcim (LHN: SW)

Desislav Delchev 17 March 2020

LafargeHolcim (LHN: SW)

12-month performance: -32%
Insider activity: Bullish
Buying pattern: Purchases from multiple directors including Chairman and CFO
Recent news: Solid full-year results

LafargeHolcim is a leading global building materials and solutions company that serves masons, builders, architects and engineers. The group operates in over 70 countries, and is the largest cement producer in the world. The company is listed on the SIX Swiss Exchange and currently has a market capitalisation of CHF 21.4 billion.

LafargeHolcim issued a solid set of full-year results in late February. While sales were down 2.7% on the previous year, net income rose by nearly 50% to CHF 2.25 billion, slightly ahead of the consensus forecast of CHF 2.21 billion. Free cash flow jumped 79% to CHF 3.0 billion. Looking ahead, the group said that it expects sales to grow 3% to 5% this year.

lafargeholcim chart

                    Source: 2iQ Research

Examining insider transaction activity, we think it’s interesting that five directors, including Chairman Beat Hess and CFO Geraldine Picaud, have purchased LHN shares since the company’s full-year results. In our view, the fact that five insiders have purchased stock is a bullish signal. With the company recently delivering a record performance, and multiple insiders buying shares, we think the stock has the potential to outperform.

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