Top-level corporate insiders have deep insight into their companies’ operations and future prospects. This means that their trading activity can provide investors with valuable insights.
In this report, we are going to highlight some buying from top-level insiders at HelloFresh SE (HFG:GR). HelloFresh is a German company that provides ‘meal-kit’ services. Globally, it has over five million active customers. The company is listed on Deutsche Börse’s Xetra and currently has a market capitalization of €9.5 billion.
HelloFresh: Insider Buying
Our records show that between 2 March and 8 March, both Co-Founder and Co-CEO Thomas Griesel and CFO Christian Gaertner bought HFG stock. Griesel purchased 17,000 shares at a price of €58.81, spending just under €1 million on shares, while Gaertner added 1,900 shares, spending around €110,000.
Large Insider Trades
This insider trading activity is worth highlighting for a couple of reasons. Firstly, these purchases represent the largest amount of buying within a quarter at HelloFresh since the company’s IPO in 2017. This indicates that these insiders believe now is a great time to buy stock.
Secondly, Mr Gaertner has a high Trading IQ. This means that his previous purchases have been timed very well. It’s worth noting that prior to joining HelloFresh, Gaertner spent 19 years in banking, most recently at Bank of America Merrill Lynch where he ran the Equity Capital Markets business for the German speaking region. Prior to that he was at Goldman Sachs in London and Frankfurt.
Strong Full-Year Results
HelloFresh posted a strong set of full-year results in early March. For the year, group revenue amounted to €3.75 billion, up 111% year on year, supported by strong customer growth both in the US and internationally. Meanwhile, adjusted EBITDA came in at €505.2 million, up from €46.5 million in the prior year. Active customers at year end were 5.29 million, up from 2.97 million at the end of 2019.
Looking ahead, the company said that it expects revenue growth of 20% to 25% on a constant currency basis in 2021 and an adjusted EBITDA margin between 9-12%.
“As the pandemic hopefully winds down over the course of 2021, we expect consumers to continue to rely on e-commerce solutions to shop for food, as many have experienced the superior value proposition that we can offer in terms of price, variety and convenience,” commented Co-Founder and Co-CEO Dominik Richter.
Since these results, HelloFresh shares have fallen. Currently, the stock is trading near €55, down from its all-time high of €78 in mid-February. The insider buying here suggests that insiders see value at current levels. We see this buying activity as a bullish signal.