Corporate insiders tend to have superior knowledge of their firms’ operating, financing, and investing activities. If they’re buying stock, it’s often worth taking a closer look.
In this report, we are going to highlight some interesting insider buying at IQVIA Holdings Inc (IQV:US). IQVIA is an American company that provides integrated information and technology-enabled healthcare services. Its goal is to create a more modern and effective healthcare system and create breakthrough solutions that transform business and patient outcomes. The company is listed on the New York Stock Exchange and currently has a market capitalization of $53.1 billion.
IQVIA Holdings Inc: Insider Buying
Our data shows that on December 22, board member John Danhakl bought 10,000 IQV shares at a price of $272.93 per share. This trade cost the insider $2.7 million and increased his holding to 24,344 shares.
This trade is worth highlighting for several reasons.
Firstly, by purchasing 10,000 shares, Mr. Danhakl has increased the size of his position by 70%. This suggests he is very confident that the stock is set to move higher.
Secondly, our data shows that Mr. Danhakl has made well-timed purchases in the recent past. In December 2020, the insider picked up 63,451 shares at a price of $176.95 per share. Since then, the stock has risen to near $280.
Additionally, it’s worth noting that Mr. Danhakl – who has served on the board since 2016 – has an investment background. Currently, he is a Managing Partner at private equity firm LGP, which he joined in 1995. This means he’s likely to have a good understanding of the intrinsic value here.
IQVIA appears to have a lot of momentum at present.
For the third quarter of 2021, the company posted revenue of $3,391 million, up 21.7% year on year, and adjusted diluted earnings per share (EPS) of $2.17, up 33.1% year on year. On the back of this strong performance, the group raised its full-year 2021 guidance for revenue, adjusted EBITDA and adjusted diluted EPS.
Meanwhile, at its investor day in mid-November, the company provided a very upbeat forecast for 2022. It now expects revenue of $14.70 billion to $15.0 billion (vs estimated revenue of $13.8 billion for 2021) and adjusted EPS of $9.90 to $10.20 for 2022. It also expects higher revenue growth of 10% to 12% per year or 2022 to 2025.
Given the momentum here, we see the insider buying as a bullish indicator.