12-month performance: +5% Insider activity: Bullish Insider buying pattern: Buying from family holding company Recent news: Lower H1 sales due to Covid-19
Davide Campari-Milano is an Italian company that operates in the alcoholic and non-alcoholic beverage industries. The company produces spirits, wines, and soft drinks, and its brands include Campari, Aperol, Wild Turkey, and SKYY Vodka. It is listed on the Borsa Italiana and currently has a market capitalisation of €9.9 billion.
Share price rebound
We last covered Davide Campari in late March, when global equity markets were experiencing high levels of volatility due to Covid-19. At the time, we noted that three top-level insiders – including CEO Robert Kunze-Concewitz and CFO Paolo Marchsini – had recently purchased nearly €2 million worth of shares and we said that, in our view, this buying activity was a bullish signal. Fast forward to today, and CPR shares are now 25% higher than they were in late March. As is often the case, insider buys were timed well.
Source: 2iQ Research
Insider buying: large holding company purchases
What looks interesting here is that recently, holding company Lagfin S.C.A – the long-term majority shareholder of Davide Campari-Milano which is the parent company of Campari Group – has made a number of purchases of CPR stock. On 31 July, the company purchased 732,438 CPR shares at a price of €8.02 per share and then on 3 August, the holding company acquired another 770,306 shares at a price of €7.82 per share. Lagfin also purchased a large number of CPR shares in late June in two off-market transactions. Lagfin’s investment strategy is based on long-term investments in companies with potential for value creation. We see this insider buying as another bullish signal here.
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