If multiple insiders at the same company are buying stock simultaneously, it’s often worth taking a closer look. This buying pattern – which is known as ‘cluster buying’ – is a particularly strong insider trading signal.
In this report, we are going to highlight some recent cluster 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 $28.85 billion.
Ball Corp: Insider Buying
Our insider transaction data shows that between February 28 and March 10, three insiders at Ball Corp snapped up stock. Those that bought shares were:
- President Daniel Fisher (7,000 shares @ $85.86 per share)
- Senior Vice President Stacey Panayiotou (6,000 shares @ $88.91 per share)
- Board member Betty Sapp (2,862 shares @ $86.27 per share)
Combined, the three insiders spent around $1.4 million on Ball stock.
Bullish Cluster Buying Pattern
This cluster buying pattern is worth highlighting for a couple of reasons. Firstly, it contains a large purchase from the company’s President, Daniel Fisher. Mr. Fisher has served at the company since 2010 and has held a range of different positions at the firm since then. So, he is likely to have a very good understanding of the company’s operations and prospects.
Secondly, our data shows that this is the third time that insiders at Ball have spent large amounts of money on stock in the last year. This suggests that those within the company are very confident the stock is set to move higher.
Growth Potential
Ball Corp recently posted a strong set of results for Q4 2021.
For the quarter, net earnings amounted to $297 million, up from $227 million a year earlier. Meanwhile, for the year, net earnings were $878 million, up from $585 million a year earlier.
During the year, Ball returned approximately $950 million to shareholders, in addition to deploying $1.7 billion in capital expenditures.
Looking ahead, the group said that it is positioned to exceed its long-term diluted earnings per share growth goal of 10 to 15%, and increase value returned to shareholders.
“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 in the form of dividends and share repurchases in 2022 and beyond," said Mr. Fisher.
“Underlying demand for Ball's sustainable aluminum packaging portfolio and innovative aerospace technologies continues to outpace supply,” added Chairman and CEO John A. Hayes.
In light of the outlook here, we see the insider buying as a bullish indicator.
