Insider trading can provide investors with valuable clues about a stock’s potential. Top-level company insiders tend to have the most up-to-date information on their company’s prospects. If they’re buying company stock, it’s often a positive development.
Here, we are going to highlight an insider purchase at Artisan Partners Asset Management Inc (APAM:US). Artisan Partners Asset Management is a publicly-owned investment manager. It provides its services to pension and profit-sharing plans, trusts, endowments, foundations, charitable organizations, government entities, private funds, and non- US funds, and collective trusts. It’s traded on the New York Stock Exchange and currently has a market capitalization of $3.52 billion.
Artisan Partners Asset Management: Insider Buying
Form 4 filings show that on 30 April, an Independent Director of Artisan Partners Asset Management, Tench Coxe, purchased 98,000 APAM shares at a price of $51.06 per share. This purchase cost the insider approximately $5,000,000 and increased his holding by around 50%.
This insider purchase stands out for a couple of reasons. Firstly, it is a significant trade in monetary terms. This would suggest that Coxe is very positive about the company’s future prospects. It’s worth noting that our data shows that he picked up stock in March last year, at levels over 50% lower than where the shares are currently trading. This suggests that he is able to pick his trading levels well.
Secondly, Coxe has been involved in the investment management industry for a long period of time. Previously, he was Managing Director at Sutter Hill Ventures from 1989 to 2020. Before this, he worked at Lehman Brothers as a corporate financial analyst specializing in mergers and acquisitions as well as debt and equity financing. We can therefore be confident that he is very experienced in making investment decisions.
Strong Q1 Performance
Artisan Partners produced a strong set of Q1 2021 results. The numbers were a significant improvement on the Q1 2020 results and also outshone the Q4 2020 figures. Assets under management at the end of the quarter were $162.9 billion, versus $157.8 billion at the end of 2020 and $95.2 billion a year prior. Investment returns accounted for $3.7 billion of the uplift in assets under management since the last quarter and there were also $1.4 billion in net client cash inflows. Total revenues for the quarter were $290.7 million versus $202.8 million in Q1 2020 while net income was $77.3 million versus $34.8 million in Q1 2020.
“We expect to continue to compound capital and generate meaningful outcomes for our clients, associates, and shareholders,” commented Eric Colson, Chairman, President, and CEO.
On the back of the recent Q1 results, we see the insider buying here as bullish. It suggests that the Independent Director believes that the strong performance will continue and that the share price will keep moving upward.