Insider transactions can provide investors with a more complete view of activity within the world’s publicly-listed companies. No one has more information in relation to a company than its executives and directors.
In this report, we are going to highlight some interesting insider buying at Coca-Cola Europacific Partners (CCEP:US). Coca-Cola Europacific Partners makes, distributes, and sells non-alcoholic ready-to-drink beverages such as Coca-Cola, Fanta, Sprite, and Monster. A global business, it operates in nearly 30 countries. The company is listed on the New York Stock Exchange and the London Stock Exchange and currently has a market capitalization of $26.6 billion.
Coca-Cola Europacific Partners: Insider Buying
Our data shows that on 8 September, Non-Executive Director Jan Bennick bought 33,300 shares at a price of $59.89 per share. This purchase cost the insider just under $2 million.
Mr. Bennick has extensive experience in the food and beverage industry and a thorough understanding of global and Western European markets. Previously, he has served as Executive Chairman of American consumer goods company Sara Lee Corporation, CEO of pediatric nutrition group Royal Numico N.V., Chairman and CEO of Coffee group DE Masterblenders 1753 N.V., and director of consumer goods giant Kraft Foods. This experience means he is likely to have a good read on his company’s prospects.
What stands out about this recent trade from Mr. Bennick is the size of the purchase. The fact that the insider has spent nearly $2 million on stock suggests that he is very confident the stock is set to move higher.
It’s worth noting that this isn’t the only bullish insider purchase here in recent months. In early July, Victor Rufart, Coca-Cola Europacific Partners’ Chief Integration Officer bought 3,000 shares at a price of €51.00 per share, spending over €150,000 on the stock.
Good H1 Results
Coca-Cola Europacific Partners recently delivered a solid result for the six months to 2 July 2021 that reflected the easing of Covid-19 restrictions and strong in-market execution.
For the half year, revenue was up 22.5% on a comparable basis, while operating profit was up 73.5%. Diluted earnings per share came in at €1.09, up 91% on a comparable basis.
“We are pleased to report a strong H1 performance, as we confidently navigate the varied impact of the pandemic across our markets, with our focus remaining on supporting our people, customers and communities. Top-line growth, operating margin improvement and stronger free cash flow generation demonstrate the strength of our business and the successful integration of Coca-Cola Amatil. We continue to be excited by this opportunity, being unlocked through the great collaboration and sharing across all our European markets and API,” commented CEO Damian Gammell.
“Whilst we are reassured by the pace of recovery and are cautiously optimistic, our strong H1 performance and full-year guidance for 2021 demonstrate our confidence in the future of our business,” he added.
While CCEP shares are up more than 20% this year, they still trade at a very reasonable valuation. Currently, the stock trades on a multiple of just 15 times next year’s earnings forecast. Clearly, Mr. Bennick sees value at current prices. We see the insider buying here as a bullish indicator.