Top-level corporate insiders tend to have the most up-to-date information on their businesses. If they’re buying company stock, it’s often a sign that the outlook for the stock is attractive.
In this report, we are going to highlight some interesting buying from top-level insiders at Aixtron SE (AIXA:GR). Aixtron is a leading provider of deposition systems for the semiconductor industry. Its products are used by a wide range of semiconductor customers to manufacture high-performance components for electronic and optoelectronic applications. The company is listed on Deutsche Börse’s Xetra and currently has a market capitalization of €1.9 billion.
Aixtron SE: Insider Buying
Our data shows that since November 30, three top-level insiders at Aixtron have purchased stock. Those who have bought shares include:
- Chairman of the Executive Board, CEO & President Felix Grawert (7,000 shares @ €17.33 per share)
- CFO Christian Danninger (4,500 shares @ €16.71 per share)
- Chairman of the Supervisory Board Kim Schindelhauer (3,000 shares @ €17.87 per share)
This insider trading is worth highlighting for a couple of reasons. Firstly, while the purchases aren’t huge, when combined they represent the largest amount of insider buying at Aixtron within a quarter for several years. This suggests that those within the company see a lot of value in the stock right now.
Secondly, Mr. Grawert’s purchase has increased the size of his position by 97% while Mr. Danninger’s trade has increased the size of his position by 117%. This indicates that the insiders are very confident the stock is set to move higher.
Aixtron recently posted a strong set of Q3 results.
For the quarter, revenue came in at €130.8 million while EBIT amounted to €36.2 million. These figures were well up on the figures of €67.7 million and €5.6 million that the company posted for Q2.
The group noted in its results that order momentum remained high in Q3, reaching €114.2 million versus €139.0 million in Q2 2021 and €124.4 million in Q1 2021. Meanwhile, it advised that the order backlog at the end of the third quarter of 2021 stood at €267.7 million, up 63% year on year.
"Megatrends such as digitalization and data communication, energy efficiency and e-mobility are driving demand for compound semiconductors. Their outstanding properties are the basis for applications not only in optoelectronics, but increasingly also in power electronics. Our deposition equipment enables our customers to achieve exactly the performance and productivity they require. As a result, we expect revenues in the current fourth quarter of 2021 to increase even further compared to the already strong previous quarters," said Dr. Felix Grawert.
In light of these strong Q3 results, we see the insider buying here as a bullish indicator.