Corporate executives and directors tend to have superior information in relation to their firms’ operating activities. If these insiders are buying company stock, it’s often a sign that the outlook for the stock is attractive.
In this report, we are going to highlight some interesting insider buying at Altus Power Inc (AMPS:US). Altus Power is a renewable energy company that is building a clean electrification ecosystem across the US. Its aim is to provide clean energy to every home, business, and electric vehicle. It is listed on the New York Stock Exchange and currently has a market cap of around $825.58 million.
Our data shows that several insiders at Altus Power have purchased company stock recently.
Between May 19 and May 31, Co-Founder and Co-CEO Gregg Felton made three stock purchases, acquiring a total of 97,500 shares at an average price of around $4.44 per share.
Then, between June 9 and June 12, board member William Concannon made two purchases, picking up 60,000 shares at an average price of $5.49 per share.
Additionally, between June 6 and June 14, affiliated company and 10% owner GSO Altus Holdings LP also purchased stock. It bought 341,000 shares at an average price of $5.46 per share.
It’s the purchases from Co-Founder and Co-CEO Gregg Felton that look really interesting here. Prior to founding Altus Power, Mr. Felton worked at Goldman Sachs where he was Chief Investment Officer of the Credit Alternatives platform at Goldman Sachs Asset Management (GSAM). Before this, he was a senior portfolio manager at Amaranth Advisors, a multi-strategy hedge fund. Given his background, he is likely to have a good understanding of the investment potential here.
53% Revenue Growth
Altus Power’s Q1 results showed that the company has momentum right now.
For the quarter, revenues came in at $29.4 million, up 53% year on year. Meanwhile, adjusted EBITDA amounted to $16.0 million, an 83% increase on the same quarter a year earlier, with EBITDA margin rising to 55% versus 46% in Q1 2022.
Looking ahead, management was optimistic about the future. “As we grow our customer base and market presence, we anticipate an increasing flow of development opportunities," commented Mr. Felton.
For the full year, the company expects to generate adjusted EBITDA of between $97 million and $103 million, which would represent growth of 70% in 2022 at the midpoint.
In light of these results, we see the insider buying here as a bullish development.