The company insiders that are closest to the top of the pyramid within a business are the ones that are best informed to make trading decisions when dealing in company stock. They have information on business trends that others simply do not have access to.
Here, we are going to highlight some interesting insider trading activity at Fluidra SA (FDR:SM). Fluidra is a Spanish company that is focused on swimming pools and wellness equipment. The company designs and constructs swimming pools as well as selling the equipment to maintain them, protect them and upgrade them. Its wellness equipment includes spas. It’s listed on the Madrid Stock Exchange and currently has a market capitalization of €6.82 billion.
Fluidra SA: Insider Buying
Regulatory filings show that on 20 August, the CEO of Fluidra Bruce Brooks purchased 50,000 FDR shares at a price of €41.84 per share. This purchase cost Brooks approximately €2,100,000.
The large size of this trade caught our attention. In spending over €2 million on company stock, Brooks is sending out a message to investors that he strongly believes the share price is set to move higher.
It is also significant that Brooks is an industry veteran who has had great success at Zodiac Pool solutions. Starting as CEO in 2011, Brooks turned the business around by focusing the company on the residential pool market. This business was integrated with Fluidra in 2018. This experience means he is likely to understand the market dynamics of the sector better than most.
Fluidra SA produced record numbers in H1 2021 which led to upgrades.
Strong residential pool sales in the Northern Hemisphere, led by North America, meant that revenue shot up to €1.187 billion in H1 which was a jump of 54% compared to 2020. Net profit tripled to €174 million and EBITDA was up 95% at €330 million. The net debt leverage ratio fell from 2.6x to 1.6x. Guidance was raised with sales growth for the year expected to be between 35% and 40% with an EBITDA margin of between 25% and 25.5%.
“After another record quarter, our superb results in the first half and bright prospects for the future put us in an excellent position for the second half of the year and beyond. With our leading platform, we are ready to sustain our growth, margin and cash expansion,” said Eloi Planes, the Executive Chairman.
On the back of these strong first-half numbers and buoyant outlook, we see the recent insider buying as bullish. It suggests that the CEO believes that the excellent growth at Fluidra can be maintained and that the shares have further to climb.