Insider transaction activity can give investors a more complete view of the activity within the world’s publicly-listed companies. No one has more knowledge of a company, and its future prospects, than its leaders.
In this report, we are going to highlight some interesting insider buying at Bilfinger SE (GBF:GR). Bilfinger is a German industrial services provider that provides customized engineering and services to customers in process industries such as chemicals, oil and gas, and pharmaceuticals. Its services cover the entire value chain including consulting, engineering, manufacturing, assembly, maintenance, and plant expansion. The stock is listed on Deutsche Börse’s Xetra and currently has a market capitalization of €1.2 billion.
Bilfinger: Insider Buying
Our insider transaction data shows that on 11 May, two insiders at Bilfinger bought stock. The first insider to buy stock was Interim CEO and CFO Christina Johansson, who purchased 3,628 shares at a price of €27.54 per share. The second insider to purchase stock was COO Duncan Hall, who purchased 2,961 shares at a price of €27.90 per share. Combined, these insiders spent around €183,000 on GBF stock.
Top-level Insiders
This insider activity is worth highlighting for two reasons. Firstly, the insiders that have purchased stock are top-level company executives. They are likely to have an in-depth understanding of Bilfinger’s recent performance.
Secondly, both insiders have increased the size of their holdings substantially with these purchases. Our data shows that Johansson’s purchase has increased the size of her position by 29%. Meanwhile, Hall’s purchase has increased the size of his position by 23%. This suggests that the insiders are confident the stock is set to rise.
Positive Start to the Year
In its recent first-quarter results, Bilfinger said that it had made a “positive start” to the year with a rise in activity in most markets. For the quarter, the group generated adjusted EBITA of €11 million (prior year: -€11 million), corresponding to an adjusted EBITA margin of 1.3% (prior year: -1.2%). Meanwhile, it delivered a net profit for the quarter of €10 million (prior year: -€24 million). Orders received by the group in the quarter amounted to €1,001 million (prior year: €1,060 million), while the order backlog grew by 11 % to €2,796 million.
Looking ahead, Bilfinger confirmed its outlook for the 2021 financial year. It also said that it expects “significant revenue growth” and a “substantial improvement” in adjusted EBITA.
In light of these results, and the healthy outlook, we see the insider buying here as bullish.
