Insider Buying

Insider Buying Report: Acea SpA (ACE:IM)

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Acea SpA
(ACE:IM)
12 months:
+12%
Activity:
Bullish
Pattern:
Purchase from CEO
News:
Raised EBITDA guidance
Acea SpA
(ACE:IM)
12 months:
+12%
Activity:
Bullish
Pattern:
Purchase from CEO
News:
Raised EBITDA guidance

If a CEO is buying company stock, it’s often worth investigating the stock further. CEOs tend to have an intimate understanding of their businesses and are usually way ahead of analysts when it comes to revenue and earnings trends.

In this report, we are going to highlight a CEO purchase at Acea SpA (ACE:IM). Acea is an Italian company that operates in the utilities sector and has a strong focus on sustainable solutions. Its business activities include management of water services, energy production and distribution, and waste valorisation. The company is listed on the Borsa Italiana and currently has a market capitalization of €4.1 billion.

Acea SpA: Insider Buying

Our insider transaction data shows that on 4 August, Acea’s CEO Guiseppe Gola purchased 4,000 ACE shares at a price of €19.45 per share. This purchase – which cost the insider €78,000 – increased his holding to 8,000 shares.

First Purchase Since 2017

This trade is worth highlighting for a couple of reasons. Firstly, insider purchases at Acea are not common. Our records show that this purchase from Mr. Gola is the first insider purchase at Acea since December 2017.

Secondly, this purchase of 4,000 shares has doubled the size of Mr. Gola’s holding. The fact that the insider has doubled the size of his holding suggests that he is confident the stock is set to move higher.

Increased Guidance

On 28 July, Acea posted a strong set of H1 results that were ahead of expectations. For the period, revenue was up 13% to €1,825 million while EBITDA was up 9% to €619 million. Net profit was up 15% to €166 million.

“The Acea Group has continued to deliver strong results, confirming our solid earnings performance thanks to the contributions from all areas of business and attentive cash flow management,” commented Mr. Gola.

On the back of this strong performance, the group raised its EBITDA guidance for the full year. It now expects EBITDA growth of more than 8% versus previous guidance of 6% to 8%.

“The first-half results allow us to look to the second part of the year with confidence and optimism, and enable us to raise our EBITDA guidance,” said Mr. Gola.

Putting this all together, we see the insider buying here as a bullish indicator.

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