12-month performance: -66% Insider activity: Bullish Insider buying pattern: Purchases from CEO and CFO Recent news: Poor H1 results
Top-level corporate insiders have the most up-to-date information on their companies' operations. If these insiders are buying stock, investors should take note.
In this report, we are going to highlight some recent insider buying at Hunting PLC (HTG:LN). Hunting is a UK-based company that provides services to oil and gas companies. It is listed on the London Stock Exchange and currently has a market capitalization of £232 million.
Hunting: director dealing
PDMR filings show that on 5 October, two top-level insiders at Hunting purchased stock. CEO Jim Johnson purchased 50,000 shares at a price of £1.22 per share, spending £61,000 on stock, while Finance Director Bruce Ferguson bought 14,000 shares at a price of £1.23 per share, spending approximately £17,000 on stock. These purchases increased the size of each insider’s position by 16%.
Source: 2iQ Research
First CEO purchase in five years
This insider transaction activity is significant for several reasons. Firstly, this is a large amount of insider buying on a relative basis. These two purchases combined represent the largest amount of insider buying at Hunting within a quarter in several years.
Secondly, neither of these insiders purchase stock very often. Our records show that these are the first purchases for Johnson and Ferguson in more than five years. It’s worth pointing out that both of these insiders have been with the company for more than 25 years, so they are likely to know the company, and the industry, very well.
Hunting’s first-half results were disappointing. As a result of lower demand for oil globally, revenue was down 26% while underlying EBITDA was down 63%.
However, the company advised that enquiry levels had improved with the increasing average oil price and that its clients had been taking cautious steps to incrementally restart operations. It also said that it anticipated an improving Q4 2020, subject to the impact of the pandemic remaining materially unchanged from the current position.
"With a strong balance sheet and cash position, along with an undrawn borrowing facility, the group will be able to respond rapidly to any improvements in activity and any market opportunities, as and when they arise going forward,” commented Jim Johnson.
The recent insider buying here from the CEO and the Finance Director suggest that operational trends could be improving. We see this insider transaction activity 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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