Top-level insiders tend to have in-depth knowledge of their businesses. If these individuals are buying company stock, it’s worth taking a closer look.

In this report, we are going to highlight some recent stock purchases from top-level insiders at 3i Group PLC (III:LN). 3i Group is an investment business that specializes in private equity and infrastructure. A multinational company, it mainly invests in medium-sized businesses in Northern Europe and North America. It’s listed on the London Stock Exchange and currently has a market capitalization of approximately £16.14 billion.

Insider Buying at 3i Group

2iQ data shows that on March 23 and March 27, three insiders at 3i Group purchased stock. Those who bought shares were:

Co-Head, Private Equity Pieter de Jong (62,500 shares @ £16.05 per share)
Co-Head, Private Equity Peter Wirtz (80,000 shares @ £15.88 per share)
General Counsel and Company Secretary Kevin Dunn (2,474 shares @ £16.01 per share)

Combined, these insiders bought around £2.31 million worth of company stock.

Investment Experience

This trading activity is worth highlighting for several reasons.

Firstly, all of these insiders have substantial investment experience. So, they are likely to have a good understanding of the company’s intrinsic value. It’s worth noting that both Mr. de Jong and Mr. Wirtz have made well-timed trades in the recent past, picking up stock at much lower levels.

Secondly, these three individuals are not the only top-level insiders to buy stock here recently. Back in February, Chairman David Hutchinson purchased around £230,000 worth of 3i Group stock. Clearly, there is a consensus view within the organization that the stock is undervalued right now.

Trading Update

3i Group recently held a capital markets seminar and provided a portfolio update.

At this seminar, the group advised that its largest portfolio company, Action, is performing well right now. It said that Action has seen a strong start to 2023 across all its geographies and for the first 11 weeks of the year, net sales were €2.09 billion, 37% ahead of the same period in 2022. It noted that Action is planning to make another dividend payment to shareholders in the last week of March.

Management also said that its portfolio is demonstrating “good overall resilience” with most companies showing good momentum into 2023.

In light of this trading update, and the fact that the stock has a very low valuation at present, we see the insider buying here as a bullish indicator.

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