Insider Buying

GreenVolt insider buys another €1.65 million worth of stock

GreenVolt Energias Renovaveis SA
(GVOLT:PL)
12 months:
+13.56%
Activity:
Bullish
Pattern:
Large purchase from board member
News:
H1 results
GreenVolt Energias Renovaveis SA
(GVOLT:PL)
12 months:
+13.56%
Activity:
Bullish
Pattern:
Large purchase from board member
News:
H1 results
 The image's background depicts Solar Panels on snow with windmill under clear day sky, with the blog introduction mentioning the insider investment of €1.65 million on top.

Insider buying can provide clues about a stock’s next move. Insiders sell company stock for a number of reasons. Yet they only buy stock for one reason – they expect it to rise.

In this report, we are going to highlight some interesting insider buying at GreenVolt Energias Renovaveis SA (GVOLT:PL). GreenVolt is a renewable energy company that is engaged in the production of electric power from biomass, solar, and wind operations. It is listed on the Euronext Lisbon stock exchange and currently has a market capitalization of €1.08 billion.

Insider buying at GreenVolt

Our data shows that on October 14, board member Paulo Fernandes purchased 225,000 GVOLT shares at a price of €7.35 per share. This trade cost the insider approximately €1.65 million and increased his holding to 13.262 million shares.

Trading skill

This trade is worth highlighting due to the fact that Mr. Fernandes has made well-timed stock purchases in the recent past. In September last year, we noted that the insider had made three purchases when GreenVolt stock was trading near €6. Since then, it has traded as high as €10.90. The fact that the insider is buying stock again now suggests that he believes the recent pullback has presented an attractive entry point.

It’s worth noting that Mr. Fernandes has considerable industry experience. Currently, he is Vice Chairman at Altri, which operates in the wood pulp production and renewable energy industries. Previously, he was one of the co-founders of Cofina, the company that led to the creation of Altri. So, he is likely to have a good understanding of GreenVolt’s prospects.

Impressive growth

GreenVolt’s recent H1 results showed that the company continues to grow at a healthy rate.

For the first half of 2022, total revenues were €113.3 million, up 170% compared to H1 2021. Meanwhile, EBITDA amounted to €36.8 million, up 248% year on year. Net profit attributable to GreenVolt was €1.2 million, up 17% year on year.

This quarter, GreenVolt has already achieved two key milestones. Not only has it successfully completed a €100 million rights issue, which will allow it to accelerate its growth plan going forward, but it has also sold €155 million worth of wind and solar assets to Iberdrola. This will provide more optionality for the second half of the year.

In light of the growth here, and the fact that the stock has experienced a sharp pullback recently, we see the insider buying as a bullish indicator.

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