The Unilever Group (UNA: NA)
12-month performance: -17%
Insider activity: Bullish
Buying pattern: Large purchase from CEO
Recent news: Mixed Q1 trading update
Unilever is a leading fast-moving consumer goods company. Its products, which include Dove soap, Domestos cleaner, and Ben & Jerry’s ice cream, are used by around two billion people across the world every single day. The company is listed on the Euronext Amsterdam and the London Stock Exchange and currently has a market capitalisation of €119 billion.
In an update on 23 April, Unilever advised that demand patterns have changed due to Covid-19. The company said that it had seen upswings in sales of hygiene and in-home food products, however, out-of-home consumption had dropped off significantly, affecting its food service and ice cream business. Unilever advised that things could get worse before they get better. However, it also said that it is well-positioned to navigate the crisis and that its long-term growth story is intact. “Our portfolio, our financial stability and the quality of our leadership teams around the world mean that Unilever is well-positioned during this crisis and for the changing world that will come afterwards. The fundamental drivers of growth continue to be the key principles driving our execution as we remain focused on delivering superior long-term financial performance through our sustainable business model," said CEO Alan Jope.
What stands out to us about Unilever is that on 24 April, Jope purchased 26,396 shares, spending a total of €1.2 million on stock. This purchase boosted his holding in the Euronext Amsterdam-traded shares from 11,112 shares to 37,508 shares – an increase of 238%. We see this large purchase as bullish. As CEO, Jope is likely to have an excellent understanding of Unilever's future prospects. This €1.2 million purchase suggests he’s confident about the future. With the stock currently down about 12% year to date, we think it’s worth a closer look right now.