Insider Buying

Hillman Solutions Insiders Buy $1.6 Million Worth of Stock

Hillman Solutions Corp
HLMN:US
12 months:
-23%
Activity:
Bullish
Pattern:
Purchases from multiple insiders including CEO
News:
Q3 results
Hillman Solutions Corp
HLMN:US
12 months:
-23%
Activity:
Bullish
Pattern:
Purchases from multiple insiders including CEO
News:
Q3 results
The image's background depicts a man drilling into a wood board, with the blog introduction mentioned that $1.6M cluster buying by Top Executives on top.

One thing we always pay attention to is ‘cluster buying’. This is where three or more insiders at the same organization are buying company stock simultaneously.

In this report, we are going to highlight cluster buying at Hillman Solutions Corp (HLMN:US). Hillman is a provider of building hardware solutions. Its customers include home improvement centers, mass merchants, national and regional hardware stores, pet supply stores, and OEM and industrial customers. The company is listed on the Nasdaq and currently has a market cap of $1.56 billion.

Insider Buying at Hillman Solutions

Our data shows that between November 29 and November 30, three insiders at Hillman Solutions purchased stock. Those who bought shares were:

  • President and CEO Doug Cahill (129,000 shares @ $7.71 per share)
  • CFO Robert Kraft (65,000 shares @ $7.65 per share)
  • CTO Scott Kelley Moore (13,000 shares @ $7.59 per share)

In total, the insiders spent around $1.6 million on the stock.

Top-level Insiders

This buying activity is notable for several reasons.

Firstly, three top-level, C-suite insiders have purchased stock. Top-level insiders tend to have the most information on their companies.

Secondly, these insider traders have invested a considerable amount of money in company stock. Mr. Cahill’s purchase, in particular, is very large.

Third, our research reveals that Mr. Cahill has an investment background. Prior to joining Hillman, he was a Managing Director of private equity firm CCMP from July 2014 to July 2019 and was a member of CCMP's Investment Committee. This background means that he is likely to have an excellent understanding of Hillman’s intrinsic value.

Positioned Well for 2023

Hillman Solutions recently posted a solid set of Q3 results.

For the period, net sales amounted to $378.5 million, up 4% year on year, while adjusted EBITDA totaled $59.0 million compared to $56.5 million in the prior year quarter. Earnings per share came in at 14 cents, well above the consensus forecast of 10 cents.

Looking ahead, management was optimistic in relation to the company’s prospects.

“Looking forward, we see several catalysts that reinforce our competitive moat and our expectation for further growth. Near record homeowner’s equity in homes and an aging U.S. housing stock provide a meaningful driver of home improvement projects for years to come, which bodes well for our estimated 90% exposure to repair, remodel, and maintenance activity,” said Mr. Cahill.

“As we look toward 2023, we are positioned well to continue delivering unmatched performance to our customers while working down inventory and generating solid returns in our business,” he added.

In light of this confidence, and the fact that the stock has fallen around 33% over the last six months, we see the insider buying here as a bullish indicator

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