Top-level insiders such as C-suite executives tend to have an excellent understanding of their companies’ operating activities. If these insiders are buying company stock, it’s often worth taking a closer look.
In this report, we are going to highlight some interesting insider buying at BEWI ASA (BEWI:NO). BEWI is a Norwegian company that provides packaging, components and insulation solutions. In recent years, the company has made a number of acquisitions in the Nordic region and across Europe, and as a result, it now serves customers in a wide range of markets including the food, housing, pharmaceutical, automotive, and insulation industries. The company is listed on the Oslo Stock Exchange and currently has a market capitalization of NOK 4.8 billion.
BEWI: Insider Buying
Our data shows that on 12 August, BEWI’s COO Jonas Siljeskaer bought 24,424 shares at a price of NOK 30.80 per share. This purchase cost the insider a total of NOK 752,000 (USD $83,000).
This trade stands out for a couple of reasons. Firstly, it is quite large in relative terms. It is the second-largest purchase from an insider since the company’s IPO a year ago.
Secondly, it has increased the size of Siljeskaer’s holding by 24%. This suggests that he is confident the stock is set to move higher.
It’s worth noting that Siljeskaer has significant company experience. He joined the company in 2010 and has held various positions since. Currently, he is managing director and a member of the board of directors in several subsidiaries in the group. So, he is likely to have a good read on the company’s prospects.
BEWI recently posted a strong set of second-quarter results.
For the quarter, the company recorded net sales of €198.1 million compared to €105.1 million for Q2 2020, corresponding to an increase of 88%. Of this growth, 60% was organic growth driven by improved volumes and higher sales prices in all segments, following strong demand. Net profit for the quarter was €14.4 million (Q2 2020: €8.5 million) while earnings per share came in at €0.10 (Q2 2020: €0.06).
BEWI advised that it is experiencing strong demand in most of its end-markets at present and that market demand is expected to be strong in the second half of 2021. It added that the board considers the group to be “very well-positioned” for further profitable growth.
In light of these results, we see the insider buying here as a bullish indicator.