Insider Buying

EssilorLuxottica insider buys €390k worth of stock

EssilorLuxottica
(EL:FP)
12 months:
-6.82%
Activity:
Bullish
Pattern:
Purchase from board member
News:
Q2 results
EssilorLuxottica
(EL:FP)
12 months:
-6.82%
Activity:
Bullish
Pattern:
Purchase from board member
News:
Q2 results
The image's background depicts a person holding eyeglasses, with the blog introduction mentioning the 2insider rises his holdings by 33% on top.

Insiders have access to the latest information on their companies and often also have a wealth of experience that can help them evaluate their firms’ prospects. If they are buying company stock, it’s generally worth taking a closer look.

In this report, we are going to highlight an interesting insider purchase at EssilorLuxottica (EL:FP). EssilorLuxottica is a leading designer and producer of ophthalmic lenses, optical equipment, prescription glasses, and sunglasses. Its brands include Ray-Ban, Oakley, Persol, and Oliver Peoples. The company is listed on the Euronext Stock Exchange Paris and currently has a market capitalization of €67.09 billion.

Insider buying at EssilorLuxottica

Our data shows that on October 3, board member Romolo Bardin purchased 2,805 EL shares at a price of €141.37 per share. This trade cost the insider approximately €390,126 and increased his holding to 11,301 shares.

Investment background

Mr. Bardin is likely to have a good understanding of EssilorLuxottica’s prospects. Currently, he is CEO of Delfin, an investment company that has a large stake in EssilorLuxottica. Delfin’s Chairman is Cav. Leonardo Del Vecchio – who founded Luxottica S.p.A in 1961 and built the business into a global leader in the production and distribution of glasses frames.

What stands out here is that Mr. Bardin has increased the size of his position by around 33%. This suggests that he is confident the stock offers value right now.

New share buyback announced

In mid-September, EssilorLuxottica confirmed its financial targets for 2026. At a capital markets presentation with analysts, CFO Stefano Grassi said that the company expects annual revenue to hit between €27 billion and 28 billion by 2026 (versus €19.8 billion in 2021), adding that additional growth could come from myopia solutions outside of China, smart glasses, and optical e-commerce.

Since then, the company has launched a new share buyback program. Reflecting the group’s confidence in its value creation and long-term prospects, EssilorLuxottica has granted a mandate to an investment services provider for the purchase of up to 1,500,000 EssilorLuxottica shares before March 31, 2023. At today’s share price, that equates to around €225 million worth of stock.

In light of these developments, we see the insider buying here as a bullish indicator.

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