Insider Buying

2iQ Insider Brief: GREENYARD NV (GREEN:BB)

featured image

Greenyard NV (GREEN: BB)

12-month performance: -38%
Insider activity: Bullish
Buying pattern: Purchases from Co-CEO
Recent news: Provided Covid-19 update

Greenyard is a Belgian food company that produces fresh, frozen, and prepared fruit and vegetables. The company is active in more than 25 countries and serves 19 out of the top 20 retailers in Europe. It is listed on the Euronext - Brussels and currently has a market capitalisation of €239 million.

After a challenging few years, Greenyard recently issued an encouraging set of full-year results. Stating that fiscal year 2019/2020 was a year of recovery, the company reported overall net sales of €4,061 million, an increase of 4% on the previous year, along with adjusted EBITDA of €95.7m, which was above the upper end of its initial guidance. Meanwhile, the net result from continued operations amounted to a loss of €68 million, a vast improvement on the loss of €192 million in the previous year. Co-CEO Marc Zwaaneveld commented: “Greenyard is on its way to regain financial health and will be ready for sustainable growth.”

GREEN-BB--chartSource: 2iQ Research

What looks interesting here is that on 19 June, Zwaaneveld purchased 50,000 GREEN shares at an average price of €5.39, spending a total of around €270,000 on stock. This purchase from the Co-CEO doubled his personal holding from 50,000 shares to 100,000 shares. This buying activity suggests that the insider is genuinely confident that the company has turned things around and is set for future growth. We see this large insider purchase as a bullish signal.