Insider Buying

2iQ Insider Brief: Vistry Group PLC (VTY: LN)

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Vistry Group PLC (VTY: LN)

12-month performance: -37%
Insider activity: Bullish
Buying pattern: Purchases from multiple insiders including CEO, CFO, and Chairman
Recent news: Issued Covid-19 update

Vistry Group is a UK-based housebuilding company. A top-five UK housebuilder by volume, the group builds around 12,000 houses per year across the country. The company is listed on the London Stock Exchange and currently has a market capitalisation of £1.5 billion.

Vistry Group advised on 25 March that, due to Covid-19, it had closed its sales offices and was commencing the process of closing its construction sites. The group said that, given the uncertainty associated with the outbreak, it was still too early to speculate on the full extent of the impact on financial performance for the full year and beyond. However, it also said that it was holding £90 million in cash with a further £225 million of undrawn facilities available, and that it was confident it would come through the uncertainty in a great position to continue building homes.

vistry group chart                         Source: 2iQ Research

Looking at insider transaction activity at Vistry Group, we think it’s interesting that a number of top-level insiders purchased shares in late March near the £6 level. Between 25 March and 31 March, CEO Gregory Fitzgerald made three purchases (spending around £400,000 on stock), while CFO Earl Sibley, COO Graham Prothero, and Chairman Ian Tyler also bought shares. Overall, this buying activity represented the largest amount of insider buying in over two years. We see this as a bullish signal as it suggests that insiders are confident that the company can withstand the coronavirus disruption and that they believe the stock is undervalued.