Insider Buying

APi Group (APG:US) insider buys more stock

APi Group Corp
(APG:US)
12 months:
-26.64%
Activity:
Bullish
Pattern:
Purchase from board member
News:
Q2 results
APi Group Corp
(APG:US)
12 months:
-26.64%
Activity:
Bullish
Pattern:
Purchase from board member
News:
Q2 results

Insider buying can provide clues about a stock’s next move. Insiders sell company stock for a number of reasons. Yet they only buy stock for one reason – they expect it to rise.

In this report, we are going to highlight some interesting insider buying at APi Group Corp (APG:US). APi is a provider of safety and specialty services to businesses. Operating in over 500 locations worldwide, it provides services to clients in a range of industries including construction and oil and gas. The company is listed on the New York Stock Exchange and currently has a market cap of $3.54 billion.

Insider buying at APi Group

Our insider transaction data shows that between September 7 and September 19, board member Anthony Malkin purchased 129,000 APG shares at an average price of $15.3 per share. This buying activity cost the insider approximately $1.96 million.

Trading skill

This trading activity is worth highlighting due to the fact that Mr. Malkin has made a well-timed purchase in the recent past. On June 17, the insider picked up 37,800 APG shares at a price of $14.47 per share. That price level turned out to be very close to the bottom for the stock in the recent market sell-off. And since then, the stock has traded as high as $18.46.

It’s worth noting that this recent trading activity has increased the size of Mr. Malkin’s holding by about 33%. The fact that the insider has increased the size of his holding by such a large percentage suggests that he is very confident the stock is set to continue rising.

Strong Q2 results

APi Group recently posted strong Q2 results.

For the period, revenue amounted to a record $1.6 billion, up 69% year on year. Meanwhile, adjusted earnings per share came in at a record $0.37, an increase of $0.08 year on year, and ahead of the consensus forecast of $0.35. Adjusted gross margin was 26.6%, compared to 23.4% in the prior-year period.

Looking ahead, management said that it is aiming to continue delivering strong operating and financial performance by remaining focused on the activities that helped the group deliver a strong first half, including pricing, a focus on growing inspection, service and monitoring revenue, strong spend controls, and disciplined project and customer selection. It noted that the integration of Chubb is going very well and ahead of its initial plan and that it is focused on capturing value from the acquisition.

In light of these results, and the fact that the stock is trading at a low valuation at present, we see the insider buying here as a bullish indicator.

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