Insider Buying

Insider Buying Report: IG Group Holdings PLC (IGG:LN)

IG Group Holdings PLC
(IGG:LN)
12 months:
-17.90%
Activity:
Bullish
Pattern:
Large purchase from board member
News:
Q3 update
IG Group Holdings PLC
(IGG:LN)
12 months:
-17.90%
Activity:
Bullish
Pattern:
Large purchase from board member
News:
Q3 update

Insiders have access to the latest data on their companies and often also have a wealth of experience that can help them evaluate their firms’ prospects. If they are buying company stock, it’s generally worth taking a closer look.

In this report, we are going to highlight some interesting insider buying at IG Group Holdings PLC (IGG:LN). IG Group Holdings operates a trading and investment platform. Operating in 20 countries worldwide, it provides access to over 19,000 securities. The company is listed on the London Stock Exchange and currently has a market capitalization of £3.09 billion.

IG Group Holdings PLC: Insider Buying

Our data shows that on May 19, board member Jonathan Moulds purchased 100,000 IGG shares at a price of £7.03 per share. This trade – which represented the insider’s first purchase at IG since he joined the board in mid-2018 – cost Mr. Moulds just over £700,000.

IG Group Holdings PLC price chart showing notable buy and sell events

Financial Expert

Mr. Moulds has extensive experience in the financial services industry. Currently, he is Chairman of Litigation Capital Management Limited, a UK-listed litigation finance company. Previously, he spent 20 years at Bank of America and was Chief Executive Officer of Merrill Lynch International following the merger of the two institutions in 2008. He also served as Chairman of the International Swaps and Derivatives Association (ISDA).

What caught our attention here is the size of the trade from Mr. Moulds. His £700k purchase represents the largest purchase from an insider at IG since January 2017. The fact that the insider has spent £700k of his own money on stock suggests that he is very confident that the stock is set to move higher.

Well Positioned for the Future

IG’s most recent trading update, for the third quarter of its fiscal year, showed that the group still has momentum.

For the quarter, net trading revenue from continuing operations was £257.2 million, up 13%, which was an excellent result given that the prior-year period included extraordinary meme stock-related volatility. Meanwhile, at the end of the quarter, the group had 292,200 active clients – an all-time high and up 33% year on year.

Looking ahead, IG said that it was well positioned for the future and that its medium-term guidance remains unchanged. It added that FY2022 revenue would moderately exceed market expectations.

"I'm delighted to be reporting another quarter of outstanding performance driven by a record number of clients trading in the period. Today, we have more clients and a broader range of products to trade than ever before in our history,” said CEO June Felix. “We aren't stopping here - a new IG is emerging, and we're excited by the opportunities ahead of us, building on our strengths and track record of delivery,” he added.

In light of this update, and the confident tone from management, we see the insider buying here as a bullish indicator.

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