An Insider at WEX Just Bought $252K Worth of Stock

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Insider transaction activity can help investors cut through the data overload. Insiders are some of the most informed participants in the market meaning their buying and selling activity can provide investors with valuable trading signals.

In this report, we are going to highlight some interesting insider buying at WEX Inc (WEX:US). WEX is a financial technology company that is focused on fleet solutions, travel and corporate solutions, and health and employee benefit solutions. Headquartered in the US, it provides services to corporate and government organizations globally. It’s listed on the New York Stock Exchange and currently has a market cap of around $7.9 billion.

$252K Buy

Our data shows that on August 17, board member James Groch purchased 1,350 WEX shares at a price of $187 per share. This trade cost the insider $252,450 and increased his holding to 11,205 shares.

Investment Background

This trade is notable for several reasons.

Firstly, Mr. Groch has a background in investment management. Previously, he was Global Group President and Chief Investment Officer of real estate services and investment management firm CBRE Group. Here, he was active in the technology space, leading the development of two significant software platforms that are still core to CBRE today.

Secondly, our data shows that Mr. Groch has made well-timed stock purchases in the recent past. Last November, for example, he snapped up 1,400 shares at a price of $151.25 per share. Since then, the stock has traded as high as $201.

Full-year Guidance Raised

WEX recently posted a solid set of results for the second quarter of 2023.

For the period, the company generated record Q2 revenue of $621 million, up 4% year on year. Meanwhile, net income attributable to shareholders came in at $95.3 million versus $34.1 million a year earlier.

Looking ahead, the company raised its revenue and earnings guidance for the full year, as it expects its strong performance to more than outpace its outlook for lower fuel prices in the second half of the year.

We delivered solid financial performance in the second quarter, achieving results that continued to show the strength of our global commerce platform, the competitiveness of our offering, and the power of our business model,” commented CFO Jagtar Narula.  

“As we head into the second half of 2023, I remain confident in WEX’s path forward and the long-term growth opportunities ahead,” added Chair and CEO Melissa Smith.

In light of the increase to guidance, we see the insider buying here as a bullish development.