12-month performance: +3% Insider activity: Bullish Buying pattern: Multiple purchases from Chairman Recent news: Good Q1 results
Ratos is a Swedish private equity company that owns and develops unlisted medium-sized Nordic companies. Its objectives are to contribute to the long-term and sustainable business development of the companies it invests in, and make value-generating transactions. The company is listed on the OMX Nordic Exchange Stockholm and currently has a market capitalisation of SEK 8.9 billion.
Ratos recently issued a good set of first-quarter results. For the three-period month period ending 31 March, net sales increased by 7% to SEK 5,584 million, while EBITA increased by 43% to SEK 107 million. President and CEO Jonas Wiström said that he was satisfied with the trends in earnings, growth and cash flow during the period, given the economic uncertainty associated with Covid-19.
Source: 2iQ Research
What looks interesting here is the fact that Chairman Per-Olof Soederberg has purchased Ratos B shares three times this month. On 1 June, the insider bought 149,595 B shares, and then on 2 June, he bought another 269,905 B shares. Combined, these purchases cost Soederberg a total of around SEK 10.8 million (approx $1.2 million). The last time Soederberg purchased Ratos B shares, in mid-September 2019, the stock rose around 40% in the next two months after the company reported strong Q3 earnings. Given these recent insider purchases, we think the stock is worth a closer look right now.
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