Insider Buying

Insider Buying Report: Accesso Technology Group PLC (ACSO:LN)

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Accesso Technology Group PLC
(ACSO:LN)
12 months:
+253%
Activity:
Bullish
Pattern:
Purchases from CEO and Chairman
News:
Raised full-year revenue guidance
Accesso Technology Group PLC
(ACSO:LN)
12 months:
+253%
Activity:
Bullish
Pattern:
Purchases from CEO and Chairman
News:
Raised full-year revenue guidance

Top-level corporate insiders tend to know their businesses intimately. If they’re buying company stock, it’s often a sign that business performance is strong and that the outlook for the stock is favorable.

In this report, we are going to highlight insider buying at Accesso Technology Group PLC (ACSO:LN). Accesso Technology Group develops technology solutions for the attractions and leisure industries. Its solutions, which include virtual queuing and ticketing solutions, are used by over 1,000 venues in 30 countries. The company is listed on the London Stock Exchange’s Alternative Investment Market (AIM) and the US OTC markets and currently has a market capitalization of £367 million.

Accesso Technology Group: Insider Buying

Our data shows that in late October, two top-level insiders at Accesso Technology Group purchased stock.

On October 28, CEO Steve Brown bought 8,000 shares at a price of $12.65 per share, spending $101,200 on the stock. Then, on October 29, Chairman Bill Russell purchased 8,200 shares at a price of $12.37 per share, spending $101,434 on the stock.

The graph represents Accesso Technology Group PLC' price history, with significant buy and sell events highlighted.

These trades represented the first insider purchases since March 2021.

Trading Skill

This trading activity is worth highlighting due to the fact that these two insiders have made well-timed trades in the recent past. Back in April, we noted that Brown and Russell had picked up stock when it was trading under £6. Since then, the stock has climbed to £9. Both also picked up stock early in 2020 at much lower levels.

It’s worth noting that Brown founded Accesso in 2008 before selling the company in 2012 when it became Accesso Technology Group. He left the company briefly in 2018, however, returned to the fold in 2020. Before founding Accesso, he was Director at Walt Disney World Ticketing, where he led all aspects of the resort’s ticketing process including pricing strategy, fulfilment operations, training, and financial management. This background means he is likely to have a very good understanding of the company and its prospects.

Full-Year Revenue Guidance Upgraded

Accesso’s H1 results, posted in mid-September, showed that the company is making a solid recovery after Covid-19.

For the six months to 30 June 2021, group revenue amounted to $50.7 million, versus $24.6 million a year earlier. Meanwhile, Cash EBITDA was $9.8 million compared to -$10.4 million in H1 2020. The group noted that demand for contactless technology and online transactions supported growth in key markets with transaction volumes significantly ahead of H1 2019.

“Despite the challenges of the past 18 months, these results show Accesso is squarely back on track. Our financial performance during the first half of 2021 exceeded our previous expectations. Our revenue growth was extremely strong, and our Cash EBITDA result is significantly ahead of our initial expectations,” commented Mr. Brown.

Since then, the group has upgraded its profit guidance for the full year. In a trading update posted in late October, management advised that it expects revenue for the full year to be no less than $124 million. That would represent a full recovery from 2019 levels.

Given this strong business performance, we see the insider buying here as a bullish indicator. It suggests that insiders expect the stock to keep rising.

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