If a CEO is spending a substantial amount of money on company stock, it’s often worth taking a closer look. CEOs tend to be way ahead of analysts and portfolio managers when it comes to the performance of their companies and their stock purchases can provide valuable trading signals.
In this report, we are going to highlight a CEO purchase at Atoss Software AG (AOF:GR). Atoss Software is a German technology company that specializes in workforce management software. The company’s software, which helps businesses digitalize their working environments, is used by over 12,000 organizations globally. The group is listed on Deutsche Börse’s Xetra and currently has a market capitalization of €1.3 billion.
Atoss Software AG: Insider Buying
Our data shows that between February 8 and February 9, Co-CEO Dirk Häußermann bought 1,700 shares at an average price of €176.09 per share. The purchases cost Mr. Häußermann approximately €299,350 and increased his holding to 3,400 shares.
Mr. Häußermann – who joined Atoss in April 2021 – has over two decades of experience in the technology sector. Previously, he has held senior positions at IBM Germany, Heiler Software AG, and SAP. This experience means he is likely to have a good understanding of his company’s prospects.
What stands out about this trading activity from the insider is that it has doubled the size of his holding. The fact that he has doubled the size of his position suggests that he is very confident the stock is set to rise.
2022 Guidance Raised
Atoss recently posted an excellent set of full-year results for 2021.
For the year, sales came in at a record €97.1 million, up 13% year on year. Meanwhile, operating earnings advanced to €27.2 million, from €26.2 million a year earlier, despite the fact the company made substantial investments for the future during the period. Encouragingly, the proportion of recurring revenues in total sales rose to 50% from 46% a year earlier.
On the back of these results, the group proposed a dividend of €1.82 per share, up from €1.67 per share a year earlier.
As a result of its momentum, Atoss raised its outlook for both 2022 and the medium term. For 2022, it now expects sales of €110 million, versus its previous target of €106 million. Additionally, it now expects annual sales growth of between 13% and 17% between now and 2025.
In light of these strong results, and the increase in guidance, we see the insider buying here as a bullish indicator.