Alliance Pharma PLC (APH: LN)
12-month performance: +10%
Insider activity: Bullish
Buying pattern: Purchases from Chairman
Recent news: Provided Covid-19 update
Alliance Pharma is a UK-based healthcare company that is engaged in the acquisition, marketing, and distribution of pharmaceutical products. The company owns the rights to more than 90 pharmaceutical and consumer healthcare products and sells its products in over 100 countries worldwide. It is listed on the Alternative Investment Market (AIM) of the London Stock Exchange and currently has a market capitalisation of £395 million.
Alliance Pharma issued a reassuring Covid-19 update in mid-May. Not only did the company advise that the majority of its employees have been working from home with minimal operational disruption to the business but it also said that its supply chain remains robust and that it has not experienced any significant supply disruption due to the coronavirus. Additionally, the company said that it had been encouraged by the robustness of its product portfolio and that it was beginning to see a return in consumer confidence in China.
Source: 2iQ Research
What stands out to us here is the fact that Chairman David Cook recently purchased Alliance Pharma shares both under his own name, and also under his wife’s name. On 23 June, the insider bought 63,879 shares for his own personal holding, boosting his holding by 60%, as well as 63,879 shares for his wife, boosting her holding by 37%. These were the first insider purchases at Alliance Pharma since January 2019. In our view, these purchases are a bullish signal. They suggest the insider currently sees the stock as undervalued.