Top-level corporate executives and directors tend to have both an experience and an information edge over other investors. If these insiders are buying stock, it’s normally a positive development.
Here, we are going to highlight some purchases by top-level insiders at IG Group Holdings PLC (IGG:LN). IG Group Holdings operates as a multi-platform trading company worldwide. It’s listed on the London Stock Exchange and currently has a market capitalization of £2.9 billion.
IG Group Holdings PLC: Insider Buying
Regulatory filings show that on 21 January, Chairman Robert McTighe bought 3,100 IGG shares at a price of £8.28. This purchase almost doubled his holding in IGG. Then, on 22 January, the CEO June Felix, purchased 6,300 IGG shares at a price of £7.90 per share.
High Trading IQ
This insider activity is worth highlighting because both the CEO and the Chairman have extensive experience in the finance sector. Felix, for example, has served as CEO at IG since October 2018 having previously served as a Non-Executive Director since September 2015. Overall, she has more than 25 years of experience in the financial and digital technology sectors.
Additionally, our data shows that the CEO has a high long-term trading IQ of 113. This means that she has a good track record when it comes to the timing of her purchases. She has successfully added to her holdings at prices well below current levels during the past couple of years.
Strong H1 Results
IG Group Holdings produced a record performance in H1 FY21. Net trading revenue for the half was up 67% on H1 FY20 to £416.9 million. Profit before tax increased 129% to £231.3 million. Active clients also surged by 55% on the prior year and stood at 238,600 at the end of the half. An interim dividend of 12.96 pence was declared.
The CEO stated “We have had an outstanding six months, delivering record revenue and profit. Today I believe we’re stronger and better positioned than ever before to deliver sustainable value.”
However, despite these encouraging numbers, investors took profits. Since the results, the stock has fallen 13%.
On the back of these strong results and the positive comments on the future outlook of the company, we see the recent insider buying as bullish. It suggests that insiders see value in the stock after the pullback.