12-month performance: -7% Insider activity: Bullish Insider buying pattern: large purchase from Chairman Recent news: Solid H1 results
BAE Systems is a British multinational defence, aerospace, and security company. One of the largest defence companies in the world, it is a key supplier to the UK’s Ministry of Defence and the US’s Department of Defense. It is listed on the London Stock Exchange and currently has a market capitalisation of £16.3 billion.
Solid H1 results
BAE Systems issued a solid set of half-year results at the end of July, considering the current economic environment. For the period, sales rose 5% to £9,871 million, while underlying earnings per share decreased 15% to 18.7p. Order intake increased 11% to £9,339 million. Meanwhile, the group declared a dividend of 9.4p per share – the same payout as last year. Charles Woodburn, CEO, said: "We have delivered a robust performance in the first half of the year. Assuming no significant COVID-19 resurgence, we expect a good second half to the year. Demand for our capabilities remains high and we recognise our role not only in supporting national security, but also in contributing to the economies of the countries in which we operate."
Source: 2iQ Research
Insider buying: large Chairman purchase
What looks interesting here is that on 31 July, BAE Chairman Roger Carr purchased 40,546 BA/ shares at a price of £4.93 per share. This purchase, which cost the insider approximately £200,000, boosted his holding by 32%. It’s worth noting that this was the largest insider buy at BAE Systems in several years. Carr has a solid track record when it comes to timing his purchases. His 2iQ long-term trading IQ is a very respectable 110. We see this large purchase from the insider as a bullish signal.
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