Top-level company insiders such as CEOs and CFOs tend to have the most up-to-date information on their companies. If they’re buying stock, it’s generally a bullish development.
Here, we are going to highlight multiple director purchases at Future PLC (FUTR:LN). Future publishes content for technology, gaming and entertainment, music, creative and photography, home interest, education, television and B2B sectors primarily in the United States and United Kingdom. It’s listed on the London Stock Exchange and currently has a market capitalization of £1.8 billion.
Future: director dealing
Regulatory filings show that on 30 November the CEO of Future, Zillah Byng-Thorne, purchased 6,015 shares at a price of £16.81 per share. Then, on 2 December the CFO Rachel Addison, purchased 2,798 shares at a price of £17.74 per share. Significant shareholder Peter Wood also bought 224,000 shares between 2 December and 3 December at an average price of £17.76 per share. This purchase cost the insider approximately £3.98 million. Additionally, between 30 November and 2 December there were three other director purchases.
This insider activity looks interesting because it is the first insider buying at Future for ten months. Six insiders buying stock during a short timeframe sends out a strong bullish signal to investors. The stock has risen nearly 50% since the last cluster buying in early February, so it is very encouraging that senior insiders are buying stock at these higher levels.
The fact that Peter Wood is making a substantial investment in Future gives added weight to the strength of the cluster buying. He has recently become involved with Future after the recommended potential acquisition of GoCo and has a good track record in business.
Strong full-year results
Future shares are up 27% over the last 12 months. The full-year results at the end of November were strong. Adjusted operating profit was up 79% on 2019 at £93.4 million. Full-year revenue rose 53% to £339.6m. Future also revealed a recommended offer for GoCo Group PLC on 25 November, valuing GoCo at £594 million. The board expects the deal to be immediately earnings per share accretive and to result in cost synergies of approximately £10 million per annum on a recurring run-rate basis.
Given this positive news, we see the insider buying as bullish. It suggests that the insiders see further momentum in the business going forward.