Robert Hable 9 July 2020

Crest Nicholson Holdings (CRST: LN)

12-month performance: -41%
Insider activity: Bullish
Buying pattern: Purchases from multiple insiders including CEO and Chairman
Recent news: Issued half-year results

Crest Nicholson is a UK-based residential property developer. Operating predominantly in the southern half of England, the company builds well designed, high-quality homes in sustainable communities. It is listed on the London Stock Exchange and currently has a market capitalisation of £509 million.

Crest Nicholson issued a disappointing set of half-year results in late June. As a result of Covid-19 disruptions, revenue fell 52% while adjusted profit before tax fell 93%. However, on the positive side, the company said that it started to resume activity on its sites in mid-May. It also said that it was encouraged by the improvement in the trading environment in recent weeks, with increasing levels of web traffic and footfall being converted into reservation rates similar to those seen prior to the lock-down.

CRST-LN--chart            Source : 2iQ Research

What looks interesting here is that since the company issued its half-year results, a number of top-level insiders have purchased CRST shares. Those buying have included CEO Peter Truscott (90,000 shares), Finance Director Duncan Cooper (5,000 shares), COO Thomas Nicolson (22,485 shares), Operations Director David Marchant (4,741 shares), and Chairman Iain Ferguson (50,000 shares). This pattern of cluster buying – where multiple insiders are buying shares within a short space of time – is a bullish signal, in our view. Given the fact that multiple insiders are buying, we think the stock could be worth a closer look right now.

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