Insider trading activity can provide valuable insights for investors. That’s because corporate insiders tend to know their companies more intimately than anyone else.
In this report, we are going to highlight some insider buying at Dentsply Sirona Inc (XRAY:US). Dentsply Sirona is the largest dental equipment manufacturer in the world. Its products include dental implants, orthodontic clear aligner products, imaging systems, and dental instruments. The company is listed on the NASDAQ Global Select Market and currently has a market capitalization of $13.1 billion.
Dentsply Sirona Inc: Insider Buying
Our data shows that on 4 March, board member Gregory Lucier purchased 9,000 shares at an average price of $58.75. This purchase cost the insider $528,751.
Large insider trade
This insider trade stands out for several reasons. Firstly, our records show that this purchase represents the largest insider purchase at Dentsply Sirona since the second quarter of 2019. Our Insider Model views this trading activity as bullish.
Secondly, Mr. Lucier has significant experience in the medical industry. Previously, he served as CEO at spine company NuVasive from 2015 to 2018. Prior to that, he served as Chairman and CEO of Life Technologies Corporation for eleven years before its acquisition by Thermo Fisher Scientific in 2013. This experience gives the trade more informational value.
Revenue and profit beat
Dentsply Sirona recently posted a solid set of quarterly results that beat expectations. For the fourth quarter, revenue came in at $1.08 billion while adjusted earnings per share came in at $0.87 – well ahead of the consensus forecasts of $996 million and $0.64.
Looking ahead, the company said that it expects fiscal year 2021 revenue to be in the range of $4.0 billion to $4.3 billion, up 20% to 30% on a reported basis and up 15% to 25% on an organic basis – ahead of the consensus forecast of $3.86 billion.
“Our team delivered strong operational performance, exceeding our expectations across most metrics including operating margin expansion, healthy EPS growth and cash flow generation. While uncertainty remains on the timing and extent of a full recovery in the dental market, our 2021 outlook reflects our confidence in our portfolio and our commitment to driving growth through strategic investments,” commented CEO Don Casey.
In light of this guidance, we see the insider buying here as a bullish signal.