Insiders have access to real-time data on their companies and often also have a wealth of experience and knowledge that can help them evaluate their firms’ prospects. If they are buying company stock, it’s generally worth taking a closer look.
Here, we are going to highlight an insider transaction at Air Lease Corp (AL:US). Air Lease Corp is an aircraft leasing company that has relationships with over 200 airlines across the globe. The company also sells aircraft from its fleet to third parties and provides a fleet management service to investors and owners of aircraft portfolios. It is listed on the New York Stock Exchange and currently has a market capitalization of $4.29 billion.
Air Lease Corp: Insider Buying
Our insider transaction data shows that on February 23, a director at Air Lease Corp, Yvette Clark, purchased 6,700 AL shares at a price of $45.24 per share. This purchase cost the insider around $300,000 and increased her holding by about 170%.
Big Increase in Holding
This trade is of interest for a few different reasons.
Firstly, in increasing her stake by such a large percentage, Ms. Clark is signaling that she is confident in the future prospects of Air Lease Corp. Our insider transaction data shows that this is the first insider purchase of stock at Air Lease Corp for six months and it is therefore noteworthy that Ms. Clark has chosen to recently increase her holding in the company.
Secondly, Ms. Clark has a background in compliance. She is currently President and CEO of Hollingsworth Compliance Consulting LLC. Previously, she was Head of Anti-Money Laundering at Citigroup and Global Head of Financial Crimes & Operations Compliance for Barclays Capital Corporate & Investment Bank. This background means Ms. Clark is likely to be more risk averse than an average investor so it’s interesting that she has spent $300,000 on Air Lease Corp stock now.
Brighter Outlook for Aviation
Air Lease Corp had a tough year in 2021 due to the impact of Covid-19. However, recent Q4 results showed that conditions are improving.
For the period, revenue came in at $597 million, up 22.1% year on year. Meanwhile, diluted earnings per share rose 32% year on year to $1.24.
“We had a strong fourth quarter and second half of 2021 that benefited from continuing airline industry recovery, as seen in our cash collections, operating metrics, fleet expansion, and record lease placements. We resumed our aircraft sales program and concluded the largest aircraft order in ALC’s history to support the growing demand we are seeing in the marketplace,” said John L. Plueger, CEO and President.
On the back of these results, the company launched a $150 million common share repurchase, in addition to its 37th consecutive quarterly dividend.
It’s worth noting that industry trends appear to be improving dramatically, with The International Air Transport Association reporting that passenger numbers were up 80% in December 2021 relative to the year before.
In light of these developments, we see the insider buying as a bullish indicator.