Corporate insiders tend to have superior knowledge of their firms’ operating, financing, and investing activities. If these individuals are buying company stock, it’s generally a sign that the outlook for the stock is favorable.
In this report, we are going to highlight some bullish insider buying at Encavis AG (ECV:GR). Encavis is a German renewable energy company that acquires and operates solar and wind parks across Europe. It is listed on Deutsche Börse’s Xetra and currently has a market capitalization of €2.7 billion.
Encavis: Insider Buying
Our records show that recently, Encavis’ Chairman Manfred Krueper has made two significant purchases. On 18 February, the insider bought 5,000 ECV shares at a price of €19.46 per share. Then, on 19 February, he added another 5,000 ECV shares at a price of €19.15 per share. Overall, Krueper spent €193,050 on Encavis stock.
High Trading IQ
This trading activity is worth highlighting for two reasons. Firstly, Krueper has a good track record when it comes to timing his trades. After he last bought Encavis shares, in early September 2020, the stock rose around 80% in the next four months. Overall, he has a high 2iQ Trading IQ of 114.
Secondly, Krueper has substantial experience in the energy industry. Since 2006, he has been a member of the management board of E. ON AG. He is also currently Chairman of the supervisory board at Power Plus Communication – a leading provider of communication technology for smart metering and smart grids.
Renewable Energy Progress
Encavis continues to make progress towards its renewable energy goals.
In early January, for example, the company announced that it had injected the first kilowatt hours (kwh) into the Spanish high voltage grid from ‘Talayuela’, the largest solar park within its portfolio. It advised that Spain will become the leader of its solar park portfolio with a generation capacity of around 500 MW.
Meanwhile, in late January, Encavis announced that it had acquired another minority stake (20%) of its Budel solar park located near Eindhoven in The Netherlands, in line with its growth strategy. Encavis Group now owns close to 99% of the solar park portfolio of around 106 megawatts (MW) in The Netherlands.
In light of these developments, we see the insider buying here as bullish.