Insider Buying

Insider buying: NortonLifeLock insider buys $10 million worth of stock

NortonLifeLock Inc
(NLOK:US)
12 months:
-20.53%
Activity:
Bullish
Pattern:
Large purchase from President
News:
Acquired Avast
NortonLifeLock Inc
(NLOK:US)
12 months:
-20.53%
Activity:
Bullish
Pattern:
Large purchase from President
News:
Acquired Avast
The image's background depicts Festive holiday office party in #WindowsUglySweater Softwear by @Windows, with the blog introduction mentioning the insider's investmen of 10 million on top.

If a corporate insider is spending millions on company stock, it’s often worth taking a closer look. Insiders are some of the most informed participants in the market and their trades can provide valuable investment insights.

In this report, we are going to highlight a large insider purchase at NortonLifeLock Inc (NLOK:US). NortonLifeLock is a leading cybersecurity company. The company, which recently acquired Avast in a deal worth more than $8 billion, is trusted by 80 million users in more than 150 countries. It’s listed on the Nasdaq and currently has a market cap of $13.65 billion.

Insider buying at NortonLifeLock

Our data shows that on September 15, NortonLifeLock President Ondrej Vlček purchased 456,475 NLOK shares at a price of $21.91 per share. This trade cost the insider roughly $10 million and increased his holding to 3.453 million shares.

 

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Cybersecurity experience

Mr. Vlček has considerable experience in the cybersecurity industry. Previously he was CEO of Avast. Before this, he served in a number of senior roles at Avast including President of Avast Consumer Chief Technology Officer. Earlier in his career, he was Chief Developer, heading the team that developed one of the first ever antivirus programs for Windows. Given his background, he is likely to have a good understanding of NortonLifeLock’s prospects, post the Avast deal.

Compelling opportunity

The boards of both NortonLifeLock and Avast believe the Avast acquisition has compelling strategic and financial rationale, and that it represents an attractive opportunity to create a new, industry-leading consumer cybersecurity business.

Not only is the deal set to build a consumer cybersecurity business with a broad and complementary product portfolio and over 500 million users, but it will also unlock significant value creation through approximately USD $280 million of annual gross cost synergies, with additional upside potential from new reinvestment capacity for innovation and growth. It is expected to drive double-digit EPS accretion within the first full year following completion of the merger and double-digit revenue growth in the long term.

“This transaction is a huge step forward for consumer Cyber Safety and will ultimately enable us to achieve our vision to protect and empower people to live their digital lives safely,” said Vincent Pilette, CEO of NortonLifeLock in a press release in August.

“Our talented teams will have better opportunities to innovate and develop enhanced solutions and services, with improved capabilities from access to superior data insights. Through our well-established brands, greater geographic diversification and access to a larger global user base, the combined businesses will be poised to access the significant growth opportunity that exists worldwide,” commented Mr. Vlček.

The fact that Mr. Vlček has invested $10 million in NortonLifeLock suggests that he is very confident about the future. We see this insider buying activity as a bullish indicator.

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