Insiders have access to real-time information on their companies and often have a wealth of experience and knowledge that allows them to make a sound evaluation of their firms’ prospects. If they are buying company stock, it’s generally worth taking a closer look.
Here, we are going to highlight an insider purchase at Learning Technologies Group PLC (LTG:LN). Learning Technologies Group is a UK-based company that provides digital learning as well as talent management services to large, medium, and small corporate entities. The company has made a series of acquisitions within the last year to help drive growth. It’s traded on the London Stock Exchange’s AIM market and currently has a market capitalization of £1.45 billion.
Learning Technologies Group: Insider Buying
Our data shows that on November 10, an Independent Director at Learning Technologies Group, Leslie-Ann Reed, purchased 134,417 LTG shares at a price of £1.86 per share. This purchase cost the insider around £350,000 and increased her holding by just under 3%.
Leslie-Ann Reed is a Chartered Accountant and has held senior finance positions at several companies including Universal Pictures, Metal Bulletin PLC, and Go Industry PLC. She also has mergers & acquisitions experience at Marwyn Investment Management which combined with her financial background means she is likely to have a good understanding of the intrinsic value of Learning Technologies Group’s stock.
It’s worth noting that our data shows that Reed made a well-timed purchase earlier in 2021. Since she bought company stock at the end of March, the share price has moved up 20% which indicates she is able to pick her trading levels well. This recent purchase has cost the insider around 50% more than her last trade which suggests she is confident the shares will continue to move higher.
Strong Revenue Growth
Learning Technologies Group recently produced a robust set of H1 results.
The company reported revenue of £82.6 million, which represented growth of 29% year on year. Meanwhile, adjusted EBIT came in 20% higher at £22 million and adjusted diluted EPS was 3% higher at 2.31p.
The balance sheet was healthy with net cash of £25 million. The strategy of making acquisitions to grow the business is bearing fruit with Reflektive and Bridge now profitable and growing. GP strategies is expected to be substantially accretive to earnings in 2022.
“We are making solid progress in our ambition to serve small, mid-size and enterprise tier clients with our targeted, multi-product solutions. We are excited by opportunities to enhance our global offering through the successful integration of GP Strategies. The appreciation by corporates of the necessity, appropriateness and effectiveness of digital learning and talent management solutions will, in the Board’s view, continue to drive demand for our solutions and lead to continued strong levels of performance in the second half of 2021,” said Andrew Brode, the Chairman of Learning Technologies Group.
The combination of a positive outlook and a solid set of H1 results lead us to believe that the insider trading at the company is bullish. Whilst the company’s shares have been very strong over the last twelve months, the Independent Director has shown that she is confident they will continue to move in an upward direction.