Insiders not only have access to real-time information on their companies but also carry a wealth of experience and knowledge to help them evaluate their firms’ prospects. If these individuals are buying company stock, it’s often worth taking a closer look.
In this report, we are going to highlight some interesting insider buying at Asseco Poland SA (ACP:PW). Asseco is a Polish software company that has a presence in 60 countries globally. Its systems are used by banks, energy and telecommunication companies, the public sector, and the healthcare sector. It is listed on the Warsaw Stock Exchange, the NASDAQ Global Market, and the Israeli Tel Aviv Stock Exchange, and currently has a market capitalization of PLN 8.2 billion.
Asseco: Insider Buying
Our data shows that during October, Asseco’s Vice President of the Management Board Pawel Piwowar has purchased stock twice. On October 13, the insider bought 4,737 shares at a price of PLN 94.50 per share. Then, on October 18, he added another 13,969 shares at a price of PLN 96.50 per share. These two purchases cost the insider around PLN 1.8 million (approx. USD $453,000)
Mr. Piwowar has extensive experience in the technology sector. In 1991, he started working at Computerland, where he ended his work as the Vice President of the Management Board. Between 1998 and 2007, he was the President of the Management Board of Oracle Polska. He has served as Vice President of the Management Board at Asseco since October 2009. Given his background, he is likely to have a very good understanding of his firm’s prospects.
What’s interesting about this trading activity is that insider purchases at Asseco are quite rare. Our data shows that the last time an insider purchased stock here was late 2019. This suggests that Mr. Piwowar sees a real buying opportunity right now.
Asseco’s recent H1 results showed that the company has a lot of momentum right now.
In the first half of 2021, the group generated sales revenues of PLN 6.8 billion, which marked an increase of 18% year on year. Meanwhile, net profit attributable to shareholders amounted to PLN 242 million, an increase of 37% year on year. At the end of the period, the group had a consolidated order backlog for 2021 of PLN 10.1 billion – 16% higher than in the same period last year.
“We had a very good half-year. Double-digit increases in results in all segments and sectors of our operations, while maintaining profitability, are a source of great satisfaction,” commented Karolina Rzońca-Bajorek, Vice President of the Management Board.
Looking ahead, the company expects to benefit as companies undergo digital transformation.
“As digitization of business processes has become the answer to many challenges faced by companies and institutions today, we observe increased demand for our solutions and services, which is confirmed by double-digit growth of Asseco's order backlog for 2021 in each of our operating segments. This allows us to look at the second half of the year with optimism,” said Ms. Rzońca-Bajorek.
In light of these results, and the confident outlook statement, we see the insider buying here as a bullish indicator.