A particularly strong insider buying signal is ‘cluster buying.’ This is where a number of insiders have made purchases within a short space of time.
In this report, we are going to highlight some recent cluster buying at Impax Asset Management Group (IPX:LN). Impax is a leading UK asset manager that focuses on sustainable investment strategies. Founded in 1998, it currently manages assets of around £25 billion. The company is listed on the Alternative Investment Market (AIM) of the London Stock Exchange and has a market capitalization of £1.04 billion at present.
Impax Asset Management: Director Dealing
Our records show that between 28 January and 29 January, three insiders are Impax purchased stock. Those who bought stock included Chair Sally Bridgeland, who purchased 6,000 shares, and Non-Executive Directors Lindsey Brace Martinez and Simon O'Regan, who also purchased 6,000 shares each.
This insider activity is worth noting because all three of the insiders have significant experience within the financial services. Bridgeland, for example, who joined the board as a Non-Executive Director in July 2015, was previously CEO of the BP Pension Fund from 2007-2014. Brace Martinez, who also joined the board in July 2015, was previously a member of the Executive team and was a Managing Director at global investment firm Cambridge Associates. And Simon O’Regan – who has forty years’ experience in the insurance, pensions and asset management industries – was previously CEO of Mercer. Given their experience, they are likely to have a good understanding of Impax’s prospects.
Record High AUM
Impax has gone from strength to strength in recent years as sustainable investing has gone mainstream and recent updates from the company have shown that the company has strong momentum.
In early December, the group posted an excellent set of full-year results in which assets under management were up 34% and revenue was up 19%. The full-year dividend was increased 56%.
More recently, the company told investors in early January that on 31 December, its AUM totaled £25.2 billion, representing an increase of 25% for the quarter and a new record high.
"After a year dominated by the effects of Covid-19, there are strong reasons to believe that the business opportunities arising from the transition to a more sustainable global economy will be increasingly attractive to companies and the investors that back them. Against this backdrop, Impax is well placed to extend its well-established franchise as a specialist investment manager," commented CEO Ian Simm at the time.
Given the company’s strong momentum right, we see the director dealing here as a bullish signal.