Mycronic AB (MYCR: SS)
12-month performance: +28%
Insider activity: Bullish
Buying pattern: Buying from multiple directors including CEO, Deputy CEO, and CFO
Recent news: Solid Q4 results
Mycronic is a Swedish technology company. The group’s technology is used in a variety of applications including complex electronic circuit boards, flat screen TV displays, and advanced driver assistance systems (ADASs) in vehicles. The company is listed on the Stockholm Stock Exchange and currently has a market capitalisation of SEK 16.1 billion.
Mycronic shares have fallen in the last week on the back of the company’s fourth-quarter report, which was released on 6 February. While Q4 order intake surged 31% to SEK 1,706 million, Q4 net sales increased 12% to SEK 1,181 million, and the dividend was increased 8.3%, investors were spooked by the guidance from the company that the first half of 2020 will be “considerably weaker” than the first half of 2019, despite a very strong order backlog.
Source: 2iQ Research
Looking at insider transaction activity here, there’s a clear disconnect between investor sentiment towards the stock and insider sentiment towards the stock. Indeed, since the company’s Q4 results and subsequent share price pullback, seven separate insiders – including the company’s CEO, Deputy CEO, and CFO – have taken the opportunity to buy shares, which suggests that these insiders are confident about the future. Of particular note is the fact that CEO and President Per Lindqvist increased the size of his personal holding by 88%. Given this pattern of cluster buying, we think there’s a good chance the stock will recover.