Insider Buying

Insider Buying Report: Evergy Inc (EVRG:US)

Insider Buying Report: Evergy Inc (EVRG:US)
Evergy Inc
(EVRG:US)
12 months:
+26%
Activity:
Bullish
Pattern:
Large purchases from CEO and CFO
News:
Solid Q2 results
Evergy Inc
(EVRG:US)
12 months:
+26%
Activity:
Bullish
Pattern:
Large purchases from CEO and CFO
News:
Solid Q2 results

Top-level insiders such as C-suite executives tend to have a good understanding of their companies’ operating activities. If these insiders are buying stock, it’s often worth investigating further.

In this report, we are going to highlight some interesting insider buying at Evergy Inc (EVRG:US). Evergy is an energy company that operates in the US states of Kansas and Missouri through its subsidiaries KCP&L and Westar. The group – which serves over 1.6 million customers – owns more than 13,700 miles of transmission lines and about 52,000 miles of distribution lines. It is listed on the New York Stock Exchange and currently has a market capitalization of $14.5 billion.

Evergy Inc: Insider Buying

Our data shows that on 23 September, two top-level insiders at Evergy bought stock. President and CEO David Campbell bought 7,850 shares at a price of $63.67 per share, spending $499,699 on the stock. Meanwhile, CFO Kirkland Andrews bought 7,875 shares at a price of $63.66 per share, spending $501,392 on the stock.

High-conviction Purchases

This insider activity is worth highlighting for two reasons. Firstly, the two insiders have spent a substantial amount of money on stock. This suggests they are very confident the stock is set to move higher. It’s worth noting that the CFO’s purchase increased the size of his position by 55%. This also indicates a high level of confidence.

Secondly, these two insiders have timed trades well in the recent past. Our data shows that in early March, both Campbell and Andrews bought 10,000 shares when the stock was trading near $53. Since then, it has traded as high as $69.

Better-than-expected Results

Evergy’s recent Q2 results were solid and beat market expectations.

For the period, adjusted earnings and adjusted earnings per share were $195 million and $0.85 respectively compared to $154 million and $0.68 in the second quarter of 2020. The earnings per share figure was well above analysts’ forecast of $0.73. The group advised that earnings growth was boosted by higher weather-normalized demand, higher transmission margin, lower operating and maintenance expense, and higher other income.

On the back of these results, the company declared a dividend of $0.535 per share and reaffirmed its 2021 adjusted EPS guidance range of $3.20 to $3.40. It also reaffirmed its long-term adjusted EPS annual growth target of 6% to 8% from 2019 through 2024.

“Strong financial and operational execution allowed our team to deliver solid results in the first half of the year. We will remain focused on execution in order to capitalize on this strong momentum,” commented Mr. Campbell.

In light of these better-than-expected Q2 results, we see the insider buying here as a bullish indicator.

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