Top-level corporate insiders tend to have deep insight into their firms’ operating activities. If these insiders are buying company stock, it’s often worth investigating the stock further.
In this report, we are going to highlight a large insider purchase at Coca-Cola Europacific Partners (CCEP:US). Coca-Cola Europacific Partners is a consumer goods business that makes, distributes, and sells non-alcoholic ready-to-drink beverages such as Coca-Cola, Fanta, Sprite, and Monster. A global business, it serves customers in approximately 29 countries. The company is listed on the New York Stock Exchange and the London Stock Exchange and currently has a market capitalization of $27.1 billion.
Coca-Cola Europacific Partners: Insider Buying
Our insider transaction data shows that on 1 July, Victor Rufart, Coca-Cola Europacific Partners’ Chief Integration Officer bought 3,000 shares at a price of €51.00 per share. This purchase cost the insider €153,000.
Significant Industry Experience
This trade stands out for two reasons. Firstly, it is large in size. The size of the purchase suggests that Mr. Rufart is confident the stock is set to move higher.
Secondly, Mr. Rufart has a good track record when it comes to buying company stock. Our data shows that he purchased CCEP stock in March last year when it was trading below €30 as well as in late October last year when it was trading at just over €30. He will have generated substantial profits from these trades.
It’s worth noting that Mr. Rufart – who leads the company’s business strategy and business transformation – has considerable industry experience. Prior to joining Coca-Cola Europacific Partners, he was CEO of Coca-Cola Iberian Partners, S.A. and spent 25 years at Cobega, S.A. While with Cobega, he held a number of senior roles including Director of New Business, Head of Finance, advisor in the formation of the Equatorial Coca-Cola Bottling Company, and Head of Tax Planning.
Coca-Cola Europacific Partners was formed on 10 May when Coca-Cola European Partners completed the acquisition of Coca-Cola Amatil, bringing together two of the world’s best bottlers. The company believes that the acquisition will allow it to go further and faster in pursuing its vision for growth, through its consumer-led portfolio, collaborative customer relationships, and innovation to meet changing consumer needs. It plans to build on the best of both businesses in areas such as sustainability, digital transformation, and people in order to drive growth and scale faster.
Management appears to be confident about the future. “We now have a significantly bigger growth opportunity, having acquired a strong business with momentum and potential. We’ll have a broader and more balanced footprint and the number of consumers who can enjoy our drinks is now over 600 million people,” said CEO Damian Gammell. “We believe, as one company, we are in a much stronger position to grow,” he added.
“We are becoming a larger, more strategic partner to The Coca-Cola Company, driven by a belief in a collaborative franchise model, with a vision for long term value creation. I am excited by the prospect of what we can learn from each other and the opportunity to grow our business that this creates,” commented Chairman Sol Daurella.
In light of this confidence from the boardroom, we see the insider buying here as bullish.