Insider transaction activity can give investors a more complete view of activity within the world’s publicly-listed companies. No one has more knowledge of a company, and its prospects, than its executives and directors.
In this report, we are going to flag some interesting 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 around £26.01 billion.
Insider Buying at Experian
Our insider transaction data shows that between May 17 and May 22, four insiders at Experian purchased stock. Those who bought shares were:
Senior Independent Director Alison Brittain (5,000 shares @ £27.95 per share)
Non-executive Director Louise Pentland (2,800 ADRs @ $34.29 per share)
Non-executive Director Jonathon Howell (5,000 shares @ £26.61 per share)
Chairman of the Board Mike Rogers (1,500 shares @ £28.18 per share)
Combined, the insiders spent around £400,000 on stock.
Cluster Buying Pattern
What we have here is a ‘cluster buying’ pattern. This is where three or more insiders at the same organization are buying stock simultaneously. Typically, cluster buying is a bullish signal, as it indicates that insiders agree that the shares are set to move higher.
It’s worth noting that two of the four insiders here have significant financial experience. Ms. Brittain previously held top positions at Lloyds Banking Group and Barclays Bank while Mr. Howell is currently CFO of financial software firm Sage.
Experian recently posted solid results for the year ended March 31, 2023.
For the period, revenue was up 8% year on year at constant rates to $6,587 million. Meanwhile, benchmark earnings per share came in at $1.35, 9% higher than a year earlier.
"We delivered very strong results in FY23, reflecting a combination of new business wins, new products and expansion into higher growth markets. We saw growth in every region, in many cases outperforming our underlying markets substantially,” commented CEO Brian Cassin.
However, the shares fell due to the fact that Experian said that it was expecting organic revenue growth of 4-6% for the year ahead. Analysts had been expecting 5.8%, so the guidance was a little soft.
Clearly, the insiders here view the recent share price weakness as a buying opportunity. We see this insider activity as a bullish development.
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