Insiders have access to real-time information on their companies and often also have a wealth of experience that can help them evaluate their firms’ prospects. If these individuals are buying company stock, it’s generally worth taking a closer look.
In this report, we are going to highlight some interesting insider buying at Belden Inc (BDC:US). Belden is a leading supplier of specialty networking solutions. Its offering includes cables, connectivity, networking, software, cybersecurity, and more. The company is listed on the New York Stock Exchange and currently has a market capitalization of $2.42 billion.
Belden Inc: Insider Buying
Our data shows that on June 17, Ashish Chand, EVP of Industrial Automation at Belden purchased 9,949 shares at a price of $50.36 per share. This trade cost the insider $501,031 and increased his holding to 55,772 shares.
Mr. Chand has a lot of experience at Belden. He joined the company in 2002 and has assumed positions of increasing responsibility in sales and marketing, operations, business development, and general management since then. Prior to being appointed EVP, Industrial Automation in July 2019, he served as Managing Director, Industrial Solutions, for the company's APAC division. Given his experience, he is likely to have an intimate understanding of the business and its prospects.
What stands out here is the size of the trade. Not only has Mr. Chand spent $500,000 on stock but he has also increased the size of his holding by 22%. This suggests that he is very bullish on the stock. Our Insider Model views his purchase as very positive.
Full-Year Guidance Raised
Belden recently posted a strong set of Q1 results.
For the quarter, revenues totaled $610.4 million, an increase of 20% on the prior-year period. Meanwhile, net income came in at $44.1 million, compared to $29.1 million a year earlier. Earnings per share amounted to $0.97, compared to $0.64 in the first quarter of 2021.
“We delivered another outstanding quarter that was highlighted by strong financial performance, the completion of the Tripwire divestiture, and accretive capital deployment. Organic growth of 19% and solid execution by our teams resulted in further margin expansion and robust EPS growth. We reduced net leverage to 1.6x while completing strategic acquisitions that add important technologies and enhance our ability to provide comprehensive solutions in the Industrial Automation and Broadband & 5G markets,” commented Roel Vestjens, President and CEO of Belden.
On the back of this performance, the company raised its full-year 2022 guidance. For the year, it now expects revenue of $2.48 to $2.53 billion, compared to prior guidance of $2.39 to $2.44 billion, and adjusted EPS of $5.55 to $5.85, compared to prior guidance of $5.00 to $5.35. That would represent earnings growth of 17% to 23%.
In light of these good results, and the increased guidance, we see the insider buying here as a bullish indicator.