Company insiders tend to have the most up-to-date information on their companies’ prospects as well as deeper insight than outsiders have. If they are buying stock, it is generally a positive development.
Here, we are going to highlight some interesting insider purchases at Airthings ASA (AIRXME:NO). Airthings develops and manufactures radon and indoor air quality monitors. It’s listed on the Oslo Stock Exchange and currently has a market capitalization of NOK 2.387 billion.
Airthings ASA: Insider Buying
Regulatory filings show that on 12 February, Chairman Geir Forre bought 326,930 AIRXME shares at a price of NOK 13.13. This purchase cost Forre NOK 4.3 million (approx. $507,000). This comes after Senior Marketing Officer, Lauren Pederson, purchased 38,222 AIRXME shares at a price of NOK 13.11 per share on 4 February.
Our data shows that the Chairman’s purchase is the largest insider purchase at Airthings for several years. This suggests he is confident that the share price will continue its upward momentum.
It’s worth noting that Forre is a successful entrepreneur who is the managing partner of Airthings’ largest shareholder, Firda. His wealth of experience in the engineering industry adds more weight to his purchase.
Record Q4 Results
Airthings’ latest Q4 results were very strong. Total revenue in the quarter was NOK 84 million – up 40% year on year. Q4 total gross profit of NOK 57.2 million was up 28% year on year with gross profit margin coming in at 68%. Total revenue of NOK 216.9 million in 2020 was at the top end of guidance.
The outlook for 2021 was very positive. Airthings expects total revenue to be in the range of NOK 315 million to NOK 345 million which is over 50% higher than 2020 total revenues.
“There’s an unprecedented increase in awareness and concern about indoor air quality and how it impacts our health. As a result, we see a substantial uptake in demand for both our consumer and business solutions,” the CEO said.
Given these strong results and favorable outlook, which suggests the company will continue to grow strongly, we see the insider buying here as bullish.