BEWi ASA CEO and Chairman of the Board Make Insider Buys

Insider buying can often provide valuable insights into a company's prospects. Insiders have access to information not available to the public, and their transactions can signal their confidence in the company's future.

This report discusses insider buying activity at BEWi ASA (BEWI:NO), an international provider of packaging, components, and insulation solutions. It is listed on the Euronext Stock Exchange and has a market cap of around 7.61 NOK billion. We last reported on the insider transactions made by BEWi’s COO in August 2021.

Insider Buying at BEWi ASA

According to 2iQ’s data, two top-level insiders purchased stock between March 8 and March 13. The insiders who purchased shares were:

• CEO Christian Bekken purchased 68,834 BEWI shares

• Chairman of the Board Gunnar Syvertsen purchased 6,294 BEWI shares

Combined, the insiders invested around 2.74 NOK million in BEWI at prices between 39.51 NOK and 40.46 NOK.

Insiders Boosting Their Holdings

BEWi ASA’s insider activity is interesting for several reasons. In particular, the CEO has substantially increased their holding in the company with their trades.

Mr. Bekken has held the CEO position since BEWi ASA was listed in 2020 and has been at the company since 2002. His recent trading has boosted his holding in BEWI to 94,786 shares. This indicates that the CEO is confident in the company’s prospects.

Mr. Syversten has been the Chairman of the Board of BEWi ASA since 2018. He has over 25 years of experience in the financial sector and has held various senior management positions in investment banking. This includes a role as chairman of BEWI Invest AS, an investment company owned by the Bekken family. The last time the Chairman purchased stock in July 2022, the stock price rose by 25% in one month.

These insiders have extensive company knowledge and industry experience, and the scale of their trades indicates that they are confident in their investments.

Solid Q4 Results

BEWi’s share price recently dipped after the company posted results for Q4 2022 that performed below expectations.

The company has navigated challenging market conditions, particularly in the building and construction industry, where performance is expected to decline. Despite 60% of BEWi’s business being linked to this sector, the company has posted solid results as revenue hit €1.05 billion, up 40% from FY2021.

It’s worth highlighting that net income and profit margins were down 3.6% and 4.8%, respectively. Looking ahead, revenue is forecasted to grow by up to 7.5% per year across the next three years.

The company still sees long-term demand for insulation solutions as the need to improve energy efficiency in buildings and related regulations grows.

“We are very pleased to deliver another quarter with growth and solid results, despite challenging market conditions. The results are negatively impacted by the contribution from Jackon’s Nordic insulation business. We are of course not satisfied with this performance, and we are implementing measures to adjust capacity and reduce costs to meet the current market conditions,” said CEO Christian Bekken.

The optimistic outlook, focus on reorganizing organizational pain points, and the wave of insider buying suggests they expect the share price to rise.

We see this insider buying as a bullish development for BEWi ASA.