Company insiders are some of the most informed participants in the market. If these individuals are buying company stock, investors should take note.
In this report, we are going to highlight some interesting insider buying at Dino Polska SA (DNP:PW). Dino Polska operates a nation-wide network of medium-sized supermarkets in Poland. Currently, it has around 1,500 stores across the country. The company is listed on the Warsaw Stock Exchange and has a market capitalization of PLN 26.3 billion at present.
Dino Polska: Insider Buying
Our records show that on 9 February, Supervisory Board member Eryk Bajer purchased 7,000 DNP shares at a price of PLN 269.44 per share. The transaction cost the insider PLN 1.9 million (approx USD $510,000).
This insider purchase is worth highlighting for a number of reasons. Firstly, it is a large purchase. Our data shows that it has increased the size of Bajer’s holding by 30%. This suggests he is confident in relation to the stock’s future prospects.
Secondly, Bajer has significant company experience – he became a member of the Supervisory Board in 2010. He is likely to have an information advantage given his experience.
Third, Bajer has a financial background. Between 1994 and 2002, he worked as a broker on the Poznań Commodities Exchange.
42% EBITDA growth
Dino Polska’s most recent update, posted in November, was very encouraging.
For the first three quarters of 2020, revenue totaled PLN 7.4 billion, up from PLN 5.5 billion in the same period in 2019, while EBITDA came in at PLN 723 million, up 43% year on year. During the period, Dino increased its store count by 153 versus 138 new stores in the corresponding period of the previous year
Looking ahead, the company said that it is planning a ‘large number’ of store openings in the near future. It also advised that it is making investments to reduce the company’s environmental impact and that by early 2021, it expects 400 stores to be powered by solar energy.
In light of this solid update, we see the insider buying here as a bullish signal.