High-level corporate executives tend to have the most up-to-date information on their company’s. If these insiders are buying stock, it’s worth taking note of.
Here, we are going to highlight a CEO purchase at Accesso Technology Group PLC (ACSO:LN). Accesso Technology Group develops technology solutions for the attractions and leisure industry in the UK, Europe, Australia, the South Pacific, the US, Canada, and Central and South America. It’s listed on the London Stock Exchange’s AIM market and currently has a market capitalization of £244 million.
Accesso Technology Group Plc: Insider Buying
Regulatory filings show that from 23 March to 26 March, three insiders made purchases of Accesso stock. The CEO of Accesso Technology Group, Steven Brown, purchased 13,000 shares at a price of £5.75 per share. Following him, director Andrew Malpass bought 18,000 shares at a price of £5.75 and Chairman of Board William Russell purchased 13,000 shares at a price of £5.80 These purchases cost the insiders approximately £250,000.
Intimate Knowledge of the Business
Our data shows that these are the first insider buyings for seven months. We think it is significant that someone in such a prominent positions at the company is buying stock. It would suggest that the insiders believes the share price can continue to recover.
Brown founded Accesso in 2008 before selling the company in 2012 when it became Accesso Technology Group. He was then President and CEO from 2016 to 2018 before he left the company. He returned to the fold in 2020. This experience means that he is likely to have intimate knowledge of the business. He probably knows the business better than anyone else. It’s worth noting that last year he made several well-timed purchases of stock.
Accesso had a tough 2020 as many entertainment venues were closed due to Covid-19. There is hope around the corner, however, as countries such as the UK are beginning to move out of lockdown and returning to normality.
Recent preliminary results for 2020 were better than previous guidance. Group revenue was $56.1 million and net cash stood at $29.7 million at the end of December. A new loan was also agreed with Lloyds which gave the group access to $18 million via a 3-year revolving facility.
The company said in its outlook for the year ahead: “We remain cautiously optimistic for 2021 as vaccine rollouts accelerate. We expect performance in H1 to be above 2020 levels with a return to something close to normal trading expected later in H2. Our strong balance sheet and available facilities enable us to manage potential downside scenarios.”
Given these resilient full-year results and the improved outlook, we see the insider buying here as bullish. It suggests that the insiders are looking at the opportunities that lie ahead and buying in anticipation of the share price rising as the company’s markets recover.