Insiders have access to real-time information on their companies and often also have a wealth of experience that can help them evaluate their firms’ prospects. If they are buying company stock, it’s generally worth taking a closer look.
Here, we are going to look at recent insider buying at Bridgepoint Group PLC (BPT:LN). Bridgepoint Group is a UK-based private equity firm. The company, which has over €37 billion in assets under management, has offices in Europe, the US and China. It’s traded on the London Stock Exchange and currently has a market capitalization of £1.62 billion.
Insider buying at Bridgepoint Group
Our insider transaction data shows that between September 21 and September 22, the Executive Chairman of Bridgepoint Group, William Jackson, purchased 400,000 BPT shares at an average price of £2.37 per share. This purchase cost the director around £950,000 (approx. $1,050,000).
We believe this insider trading activity is notable for two key reasons.
Firstly, Mr. Jackson is an investment expert. He has worked on private equity transactions across Europe for more than 30 years and has served on a number of company boards during this time. This suggests he is very capable of determining the intrinsic value of the business.
Secondly, Mr. Jackson has spent around $1 million on company stock. This indicates that he is very confident that Bridgepoint Group’s shares are trading lower than they should be.
Full-year guidance confirmed
Bridgepoint Group traded strongly during H1 2022 and announced that it expects full-year results to be in line with expectations.
Revenue for the first half was 15% higher than the same period last year while underlying EBITDA was 17% higher than H1 2021. This impressive performance was the result of good investment performance and income from recently raised funds.
At the end of the first half, total assets under management were over €37 billion. This represented an increase of over 13% since the start of the financial year. The interim dividend of 4 pence per share was 10% higher than the 2021 final dividend.
“We are excited by the strategic growth prospects for the Group as we continue to progress our business development plans and remain confident in Bridgepoint’s ability to deliver attractive returns for our fund investors and our shareholders alike,” said Mr. Jackson.
Having read through the H1 results, we see this insider buying as a bullish event.