Top-level insiders such as C-suite executives are some of the most informed participants in the market. If they’re buying company stock, it’s often worth taking a closer look.
In this report, we are going to highlight some interesting insider buying at Adyen N.V. (ADYEN:NA). Adyen is a provider of payments solutions that is based in the Netherlands. Its platform, which covers the entire payment chain, enables merchants to accept payments internationally and from all sales channels, including online shops, mobile payments, and point of sale systems such as countertops, mobile terminals, tablets, and cash registers. The company is listed on the Euronext Amsterdam stock exchange and currently has a market capitalization of €81.3 billion.
Adyen: Insider Buying
Our insider transaction data shows that recently, Adyen’s COO Kamran Zaki has bought a large amount of stock on two occasions.
On 3 August, the insider bought 4,556 shares at a price of €2,297.49 per share, spending €10.5 million on stock. Then, on 1 September, the insider added another 4,555 shares at a price of €2,678.81 per share, spending €12.2 million on stock.
Overall, Mr. Zaki has spent around €22.7 million on Adyen shares since early August.
Two Decades of FinTech Experience
Mr. Zaki has considerable company and industry experience. He joined Adyen in 2014 and was originally responsible for North American Operations before being promoted to COO. Prior to joining Adyen, he worked at several technology and payments companies, including PayPal, Netflix, and Citigroup. Overall, he has over two decades of experience in FinTech.
What stands out about the insider’s recent purchases is the size of the transactions. The fact that Mr. Zaki has spent over €20 million on company stock suggests that he is very confident that the share price is set to rise. It’s worth noting that these two purchases are the largest insider purchases at Adyen for several years.
Strong H1 Results
Adyen’s results for the first half of 2021 were strong. During the period, the group processed €216.0 billion worth of transactions, up 67% year on year. For the half year, net revenue was €445.0 million, up 46% year on year. EBITDA came in at €272.7 million, up 65% year on year, while net income for the first half was €204.8 million, up 109% year on year.
Looking ahead, Adyen said that it sees a “significant opportunity” with both new and existing merchants. It added that the trend in its North American footprint mirrors its historical track record and that, with the environment growing more complex in this region, it is seeing an increased opportunity.
In light of these strong results, we see the insider buying here as a bullish indicator.