2iQ Insider Brief: Zignago Vetro (ZV: IM) Altri SGPS SA (ALTR: PL) Provention Bio (PRVB: US)

Kaloyan Kolev 27 June 2019

Zignago Vetro (ZV: IM)

 12-month performance: 35%
Insider activity: Bullish
Buying pattern: Purchases from two directors at higher levels
Recent news: Good Q1 results

 

Zignago Vetro is an Italian company that operates in the glass production industry. Its products include glass containers for food, beverages, cosmetics, and perfumery. The stock is listed on the Borsa Italiana and currently has a market capitalisation of €957 million.

Zignago Vetro shares have had a good run this year, rising nearly 30% – almost double the gain of the FTSE MIB index. The stock has been boosted by a number of positive updates, including robust full-year results for 2018 in March, and solid first quarter results in early May in which revenue and net profit were 7% higher than last year. The company also advised that demand in the various sectors it operates in is likely to remain at good levels in the next few months.

ZV_IM

Analysing insider transaction activity at Zignago Vetro, we think the recent uptrend could have further to run. We say this because since mid-May two directors, Stefano Marzotto and Luca Marzotto, have been aggressively acquiring shares, which suggests that these insiders expect the shares to keep rising. We like the fact that these directors have been willing to pay higher prices for their shares – in our view, this is a bullish signal. With management sounding relatively upbeat in a recent trading update, and two insiders loading up on shares, we think the outlook for Zignago Vetro remains favourable.

 

Altri SGPS SA (ALTR: PL)

 12-month performance: -35%
Insider activity: Bullish
Buying pattern: Large purchases from three directors including CEO
Recent news: Good Q1 results

 

Altri SGPS is a Portuguese company that is primarily involved in the production of eucalyptus pulp. This pulp is typically used in products such as tissues, writing paper, and textiles. The company also has a presence in the renewable energy space, generating energy through the direct burning of biomass. The stock is listed on the Euronext - Lisbon and currently has a market capitalisation of €1.1 billion.

 

Altri shares have had a rollercoaster year so far. Beginning the year under €6, the shares rose to nearly €8 in mid-March, however, recently they have fallen back below €6 again on the back of trade war uncertainty. Yet recent results from the company have been good. In March, the group told investors that pulp production reached a new record in 2018 and advised that net profit for the year jumped 103%, while in May, the group reported that for the first quarter, revenue climbed 20% and net profit increased 13%.

ALTR_PL

Looking at insider transaction activity here, we think the recent pullback may have provided an attractive entry point. We say this because since late May we have observed large purchases from three insiders, including the company’s CEO Paulo Jorge dos Santos Fernandos, who recently purchased 205,000 shares for a total cost of €1.3 million. With the company appearing to have solid momentum at present, and three top-level directors accumulating large quantities of shares, we think the stock could be set for a rebound once trade war uncertainty dissipates.

 

Provention Bio (PRVB: US) 

12-month performance: N/A
Insider activity: Bullish
Buying pattern: Purchases from multiple directors including CEO
Recent news: Announced good trial results

 

Provention Bio is a clinical-stage biopharmaceutical company that develops therapeutics targeting immune-mediated diseases. The company’s portfolio includes therapeutics for a broad range of diseases and conditions including type one diabetes, Crohn’s disease, celiac disease, and ulcerative colitis. The stock is listed on the NASDAQ Capital Market and currently has a market capitalisation of $470 million.

 

Provention Bio shares surged earlier this month after a National Institutes of Health (NIH) sponsored study showed that a single 14-day course of Provention's experimental treatment, PRV-031, significantly delayed the onset and diagnosis of type one diabetes in high-risk individuals compared to a placebo. In the 76-participant study, 72% of the placebo group developed clinical diabetes compared to just 43% in the PRV-031 group. As a result of this positive development, the shares are up over 500% year to date.

PRVB_US

What we think is interesting about Provention Bio is that since the shares have spiked higher in recent weeks two insiders have purchased shares at higher levels. These include CEO Ashleigh Palmer, who spent approximately $43,000 on shares on 18 June, and director Anthony DiGiandomenico, who spent around $520,000 on stock between 17 June and 20 June. In our view, this is a bullish signal, as it suggests that these insiders expect the shares to continue rising, despite the fact they are up over 500% this year. Provention Bio is clearly very much a speculative play as the company is not yet profitable, however, with two directors buying shares after the recent share price surge, we think the stock is worth keeping an eye on.

Disclaimer: Neither 2iQ Research GmbH nor its content providers are responsible for any damages or losses arising from any use of this information.

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