In investing, there are few predictive factors more significant than insider buying. No one has more insight into a company’s operations than its leaders.
In this report, we are going to highlight some bullish insider buying at Barco NV (BAR:BB). Barco is a Belgian technology company that specializes in the design and development of professional visualization equipment and solutions. Its products include display monitors, projectors, video walls, image processing, and connectivity and interactivity software. The company is listed on the Euronext Brussels stock exchange and currently has a market capitalization of €1.9 billion.
Barco NV: Insider Buying
Our records show that on 26 April, Barco’s Chairman Charles Beauduin bought 687,200 BAR shares at a price of €20.28 per share. This purchase cost the insider a total of €13.9 million. Following that from 27 April to 29 April, Frank Donck, an independent director at Barco bought 233,000 BAR shares, which cost him a total of around €4.8 million.
This insider trade is worth highlighting for a couple of reasons. Firstly, it is a large trade in both nominal and relative terms. Our data shows that it has boosted the size of Beauduin’s holding by about 24%. This suggests he is confident the stock is set to rise.
Secondly, Beauduin has a good track record when it comes to timing his purchases well. In January, for example, he picked up 34,109 shares at a price of €15.95. Since then, the stock has risen about 30%. Our model gives the insider a short-term Trading IQ of a high 115.
Barco’s recent Q1 trading update showed that business conditions are improving after a challenging period in 2020. While sales were down 27% on Q1 2020, orders grew 21% on Q4 2020 to €228.9 million, driven by strong order intake in Healthcare and Entertainment, continuing a trend of quarter-to-quarter improvement from the Q2 2020 low. At the end of the period, the group’s order book stood at €351.5 million, up 25% on Q4 2020 and up 3% on Q1 2020.
“I’m pleased with the strong first quarter order intake and the solid order book as they reflect ongoing recovery, longer-term growth potential in our end markets as well as our competitive strength. We expect to see steady improvements as recoveries in our markets further materialize,” said CEO Jan De Witte.
In light of these improving conditions, we see insider buying here as bullish.