Insiders have access to the latest information on their companies and often also have the expertise to evaluate their firms’ investment prospects. If they are buying company stock, it’s generally worth taking a closer look.
In this report, we are going to highlight some notable insider buying at Experian PLC (EXPN:LN). Experian is a global technology company that provides credit-related data and analytics solutions. Its aim is to help businesses and individuals make better credit decisions and protect themselves against fraud. It is listed on the London Stock Exchange and the US OTC market and currently has a market cap of £24.2 billion.
Insider Buying at Experian
2iQ data shows that on February 27, Experian board member Kathleen DeRose purchased 2,300 shares at a price of USD $34.71 per share. This trade – her first since joining the board in 2022 – was worth a total of around $80,000.
While this insider trade is not large in nominal terms, we still think it’s interesting. This is due to the fact that Ms. DeRose has a background in investment management. Previously, she worked at Credit Suisse, Hagin Investment Management, Bessemer Trust, Deutsche Asset Management, and Chase Manhattan Bank.
Additionally, she has a lot of experience in the FinTech world. Currently, she is the Director of the NYU Stern Fubon Center for Technology, Business, and Innovation and the Director of its FinTech Initiative. She is also a non-executive director of London Stock Exchange Group, Voya Financial, and Enfusion. Given her background, she is likely to have a good understanding of Experian’s investment potential.
Experian’s most recent trading update showed that the business is performing well right now.
For the quarter ended December 31, revenue was up 7% year on year, driven by steady demand for loans and the launch of new products.
And looking ahead, the company said that it expects total revenue growth of between 8% - 10% and modest margin accretion for the full year ending March 31, 2023.
"We delivered a good performance in Q3, in line with our expectations, driven by new products, new business wins, and consumer expansion,” said CEO Brian Cassin.
However, despite this solid trading update, the shares have pulled back recently. Clearly, Ms. DeRosa sees value after the recent pullback.
We see this insider buying activity as a bullish development.