12-month performance: -35% Insider activity: Bullish Insider buying pattern: Large purchase from CEO Recent news: Excellent first half results
Insider transaction activity can provide valuable insight into a stock’s future potential. Insiders sell company stock for a number of reasons. Yet they only buy stock for one reason – they expect it to rise. In this article, we are going to highlight recent insider buying at Evotec (EVT:GR). Evotec is a German drug discovery and development company that operates globally. It is listed on the XETRA and currently has a market capitalisation of €3.3 billion.
Insider buying: large CEO purchase
An insider purchase that stands out to us here is a recent large purchase from CEO Werner Lanthaler. Our records show that on 14 August, the insider purchased 20,000 Evotec shares at a price of €21.70 per share. The total cost of the purchase was €434,000.
Source: 2iQ Research
The largest insider purchase in years
This insider purchase looks interesting for a number of reasons. Firstly, it’s the largest insider buy at Evotec for several years. Secondly, Lanthaler – who was appointed CEO in 2009 – has a good track record when it comes to timing his purchases. The last time he bought Evotec stock, in September last year (10,000 shares at €19 per share), the stock rose about 40% in the next five months.
Solid H1 results
Evotec shares have underperformed over the last month, pulling back from around €24 to around €22. However, first-half results, issued on 12 August, were solid. H1 revenue was up 12% to €231 million. Meanwhile, the company said that it enjoyed a “strong performance” across all business lines despite Covid-19, and that it had signed multiple new and extended drug discovery and development agreements. Lanthaler’s purchase of 20,000 EVT shares suggests that he is confident about the future and that he sees value in the stock after its recent pullback. All things considered, we see this CEO purchase as a bullish signal.
Disclaimer: Neither 2iQ Research GmbH nor its content providers are responsible for any damages or losses arising from any use of this information.
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