Corporate insiders have the most up-to-date information on their companies' operations. So, their trading activity can provide us with valuable insights.
In this report, we are going to highlight some interesting insider buying at GreenVolt Energias Renovaveis SA (GVOLT:PL). GreenVolt is a Portuguese company that operates in the renewable energy space. The group is engaged in the production of electric power, sourced from biomass, solar, and wind operations. It is listed on the Euronext Lisbon stock exchange and currently has a market capitalization of €756 million.
GreenVolt Energias Renovaveis: Insider Buying
Our data shows that between 9 September and 13 September, GreenVolt board member Paulo Fernandes purchased stock on three occasions. In total, the insider picked up 1,396,422 shares, spending around €8.2 million on stock.
This buying activity increased his position to 3.058 million shares, which represents about 2.52% of the company’s total stock.
Mr. Fernandes is an experienced businessman with experience in a range of industries. In 1980, he founded media conglomerate Cofina which went public in 1998. In 2005, a spin-off saw Altri emerge from Cofina and begin independent trading as a listed entity and a member of the Portuguese PSI-20 index. Altri operates in the forestry, pulp and energy sectors through Celbi, Caima and CelTejo. Currently, Mr. Fernandes is Co-CEO of Altri.
What stands out about the recent purchases from Mr. Fernandes is their size. The fact that the insider has spent €8.2 million on stock and increased the size of his holding significantly suggests that he is very confident GVOLT stock is set to move higher.
42% Revenue Growth
GreenVolt’s H1 results showed that the company is growing rapidly.
For the six months to 30 June, revenue came in at €66.2 million, up 42% year on year. Meanwhile, EBITDA came in at €26.2 million, up 67% year on year.
During the period, the group acquired 51% of UK biomass power plant Tilbury Green Power in partnership with Equitix investment fund. It also acquired 100% of V-Ridium, a company involved in pan-European solar and wind energy projects, with a portfolio of projects in Poland, Greece and Italy.
“GreenVolt is already a benchmark company in renewable energies, clearly differentiating, with operational excellence in the production of renewable electricity through residual biomass and exploiting the more profitable opportunities in the solar photovoltaic and wind energy segment,” commented CEO João Manso Neto. “We set ambitious goals and are on the right path to achieve them, and with the ambition to exceed them,” he added.
In light of these strong results and the recent acquisitions, we see the insider buying here as a bullish indicator.