Top-level insiders such as C-suite executives tend to have an excellent understanding of their companies’ operating activities. If they’re buying company shares, it’s often a sign that the outlook for the company, and its share price, is attractive.
In this report, we are going to highlight some interesting insider buying from a top-level insider at Alerion Clean Power SpA (ARN: IM). Alerion Clean Power is an electric industrial group that specializes in electricity production from renewable sources, particularly in the wind power sector. Founded in 2003, it is one of the main independent players, owners, and operators active in onshore wind in Italy and other European markets. It is listed on the Borsa Italiana and currently has a market capitalization of €1.9 million.
Alerion Clean Power: Insider Buying
Our data shows that in June, Alerion’s CEO Josef Gostner purchased stock on four occasions. In total, the insider picked up 12,372 shares at prices of between €31.00 and €32.70 per share, spending around €400,000 on the stock.
Good Track Record
This trading activity got our attention as Mr. Gostner has made a number of well-timed purchases in the recent past. In March last year, for example, he bought a substantial amount of Alerion stock when it was trading near €13. Since then, the stock has climbed to €34. This was one of our best trading signals for 2021. It’s worth noting that our model gives Mr. Gostner a very high long-term Trading IQ of 115.
What’s interesting about his latest trading activity is that he has bought the stock at substantially higher prices and near its all-time high. This indicates that he expects the stock to continue rising in the future.
Favorable Market Conditions
In a recent business update, Alerion advised that a “significant change” had taken place in the market lately, characterized by strong growth in energy sales prices and improved development prospects for the renewable energy sector.
As a result, it now expects a substantial increase in economic and financial results over the next few years. By 2022, it has upgraded its EBITDA forecast to €260 million, up from its previous guidance of €236 million.
Given the improved business environment, the company has decided to pursue the implementation of the investment programs planned for the next few years independently, without seeking the support of an industrial or financial partner. It noted, however, that it had received some expressions of interest from leading international investors after announcing last year that it was looking for a partner to support its growth.
In light of this update, we see the insider buying here as a bullish indicator.