Insider Buying

2iQ Insider Brief: DE’LONGHI SPA (DLG:IM)

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De’ Longhi SpA (DLG:IM)

12-month performance: +34%
Insider activity: Bullish
Buying pattern: Multiple purchases from CEO
Recent news: Good trading update

De' Longhi SpA is an Italian company that designs, produces and markets products for home and business comfort. Its products, which include coffee makers, toasters, blenders, kettles, vacuum cleaners, and portable heating appliances, are distributed under the De'Longhi, Kenwood, and Braun brands. The company is listed on the Borsa Italiana and currently has a market capitalisation of €3.6 billion.

After issuing a solid set of Q1 results in May, De' Longhi issued an encouraging trading update on 6 June. In the update, the company said that all of its manufacturing and commercial structures in Italy and abroad are active and running business as usual, and that in the first part of the second quarter, sales had been beyond initial expectations. “I believe that the planned investments in marketing and in our industrial network, together with the dedication of our people around the world, will allow De’ Longhi to sail safely through these challenging times,” said Group CEO Massimo Garavaglia.

What looks interesting here is the fact that Garavaglia – who was appointed CEO and General Manager on 1 May 2020 – purchased DLG stock four times in June. After making an initial purchase of 5,000 shares on 10 June, the insider bought another 7,500 shares in the last week of June, taking his total holding to 12,500 shares. We see this buying activity from the CEO as a bullish signal. It suggests that the insider is confident about the future.