Insider Buying

Insider Buying Report: Atos SE (ATO:FP)

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Atos SE
ATO:FP
12 months:
-13%
Activity:
Bullish
Pattern:
Large purchase from CEO
News:
Announced three acquisitions

When a top-level insider such as a CEO makes a large purchase in their own company, investors should take note. It’s not a stretch to say that these individuals are some of the most informed participants in the market.

In this article, we are going to look at an interesting insider purchase at Atos SE (ATO:FP). Atos is a French multinational information technology service and consulting company that specializes in digital transformation. It’s listed on the Euronext - Paris and currently has a market capitalization of €6.6 billion.

Atos: insider buying

What’s caught our attention here is a substantial purchase from CEO Elie Girard. Our records show that on 23 October, the insider purchased 3,000 shares at a price of €65.17 per share. The total cost of the purchase was €195,510.

ATO-FP(chart)     Source: 2iQ Research

CEO purchase

This insider purchase is significant for a few reasons. Firstly, it is a large purchase, both in nominal and relative terms. It has increased the size of the insider’s holding by around 5%.

Secondly, Girard has demonstrated good timing when purchasing stock in the past. The last time he purchased Atos stock was on 19 March. Over the next month, the stock rose around 45%.

New acquisitions

Atos recently announced three new acquisitions in the areas of digital, cloud, and cybersecurity. Before the end of the year, the group plans to acquire:
  • Edifixio, a leading player in cloud consulting and integration focused on Salesforce, Amazon Web Services, and Microsoft Azure
  • Eagle Creek, a US digital technology and management consulting company specialized in Salesforce
  • SEC Consult, a worldwide player in cybersecurity consulting and penetration testing 

This will take the total number of digital acquisitions in 2020 to nine, representing a total yearly revenue of almost € 300 million, and supporting the reprofiling of the group.

The recent purchase of stock from CEO Elie Girard suggests that he is confident about the future. We see this insider buying activity as a bullish signal.