C-suite executives tend to have a good understanding of their companies’ operating activities. If these insiders are buying company stock, it’s often a sign that the outlook for the stock is attractive.
In this report, we are going to highlight some interesting insider buying at Ball Corp (BLL:US). Ball is an American packaging and aerospace company that operates worldwide. Its packaging division provides aluminum packaging to the beverage, food, personal care, and household products industries while its aerospace division manufactures spacecraft, components, and instruments for national defense, civil space, and commercial space applications. It’s listed on the New York Stock Exchange and currently has a market capitalization of $30.3 billion.
Ball Corp: Insider Buying
Our data shows that on November 9, Ball’s COO Ron Lewis bought 10,000 BLL shares at a price of $91.26 per share. This trade cost the insider $912,625 and increased his holding to 18,585 shares.
This trade is worth highlighting for several reasons.
Firstly, Lewis – who previously served at Coca-Cola European Partners – has made a substantial purchase both in nominal and relative terms. Our data shows that it has increased the size of his holding by 116%. This suggests he is very confident the stock is set to move higher.
Secondly, Lewis is not the only insider to buy the stock here recently. Back in August, we observed large purchases from a number of insiders including Vice President and Controller Nate Carey. These purchases were at a similar price to Lewis’ trade. This indicates that insiders see a lot of value around the $90 mark.
Ball Corp managed to generate solid growth in the third quarter of 2021 despite supply chain challenges.
For the period, net sales came in at $3.55 billion, up 14.9% year on year. Meanwhile, earnings per diluted share amounted to 94 cents versus 89 cents a year earlier.
"During the quarter, the company increased comparable earnings per diluted share by 6%, managed numerous supply chain inefficiencies and continued to hire and position talent to support multi-year growth initiatives,” commented John A. Hayes, Chairman and CEO.
Looking ahead, management was very confident that the company can continue to generate growth.
“Underlying demand for our sustainable aluminum packaging portfolio and aerospace technologies continues to outstrip supply, and our various growth projects around the world are supported by long-term contracts for committed volume with effective cost recovery mechanisms. Coupled with the successful startup of these new facilities, we are well positioned to meaningfully grow our long-term diluted earnings per share, EVA dollars, cash from operations and return significant value to our shareholders over time in the form of dividends and share repurchases," said Mr. Hayes.
“The company is well-positioned for long-term growth and cost/price recovery,” added CFO Scott Morrison.
In light of the confident tone from management here, we see the insider buying as a bullish indicator.