If multiple insiders at the same organization are buying company stock simultaneously, it’s often worth taking a closer look. This buying pattern – which is known as ‘cluster buying’ – is a particularly strong insider trading signal.
In this report, we are going to highlight a cluster buying pattern at AIXTRON SE (AIXA:GR). AIXTRON is a leading provider of deposition systems for the semiconductor industry. Its products are used by a wide range of semiconductor customers to manufacture high-performance components for electronic and optoelectronic applications. The company is listed on Deutsche Börse’s Xetra and currently has a market capitalization of €2.97 billion.
Insider buying at AIXTRON
Our data shows that since late October, three insiders at AIXTRON have purchased company stock. Those who have bought shares include:
- COO Jochen Linck (1,000 shares @ €26.00 per share)
- CFO Christian Danninger (4,400 shares @ €25.46 per share)
- Deputy Chairman Frits van Hout (4,000 shares @ €25.00 per share)
Combined, insiders have invested around €230,000 in AIXTRON stock.
What stands here is that three top-level insiders have purchased stock. These three insiders are likely to have an excellent understanding of the business, and its prospects.
It’s worth noting that the last cluster buy here was timed very well. Late last year, three insiders bought AIXTRON stock when it was trading near the €17 to €18 mark. Since then, the stock has risen as high as €29, outperforming the STOXX Europe 600 by a wide margin.
AIXTRON recently upgraded its full-year guidance based on its strong order situation.
In an update posted on October 27, the company advised that order intake in the first nine months of 2022 increased by 13% year on year to €425.6 million, reflecting continued high demand across almost all end markets. As of September 30, the equipment order backlog amounted to €369.4 million, compared to €267.6 million a year earlier.
As a result of the strong performance in the first nine months of the year, the company now expects full-year order intake of between €540 million and €600 million (previous guidance: between €520 million and €580 million), with revenues in an unchanged range between €450 million and €500 million. It also expects a higher gross margin of 42% (versus previous guidance of 41%) and an EBIT margin of approximately 22-24% (versus previous guidance of 21-23%).
"The increase of our 2022 guidance in this challenging environment is the result of rising demand for our pioneering technologies," commented CFO Dr. Christian Danninger. "Our strategic initiatives regarding product development and supply chain management are taking effect," he added.
In light of this increase to guidance, we see the insider buying here as a bullish indicator.