Insider Buying

2iQ Insider Brief: ANHEUSER-BUSCH INBEV (ABI: BB)

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Anheuser-Busch Inbev (ABI: BB)

12-month performance: -43%
Insider activity: Bullish
Buying pattern: Large purchases from BoD Holding Company
Recent news: Poor Q1 results

Anheuser Busch Inbev is a multinational beverages company that is headquartered in Belgium. The world’s largest brewer, it owns an impressive list of beer brands including Budweiser, Corona, Stella Artois, and Beck's. The company is listed on the Euronext - Brussels and currently has a market capitalisation of €79 billion.

Anheuser Busch Inbev has been impacted significantly by Covid-19 lockdowns. In May, the company said that core profit for the first quarter was down 14% on the year, and it advised that things would most likely get worse before they got better. However, now that the lockdowns across Europe are being eased, the outlook appears to be improving. Bars and restaurants are gradually reopening and on-premise beer sales are rising.


ABI-BB--chart       Source: 2iQ Research

Since mid-May, we have observed a number of interesting insider trades here. Firstly, between 18 May and 11 June, BRC Sarl, an investment company owned by Brazilian investment bankers who sit on Anheuser Busch Inbev’s board, purchased a large amount of ABI stock. Over three separate transactions, the investment company spent approximately €100 million on stock. Secondly, on 25 June, Claudio Garcia, who is classified as a representative of a main shareholder, sold 86,139 put options on the stock. This move suggests that he expects ABI shares to rise. We see both of these insider transactions as bullish.