Top-level corporate insiders have deep insight into their company’s operations and future prospects. This means that their buying and selling activity can provide investors with valuable trading signals.
Leifheit AG (LEI:GR)
12-month performance: +57%
Insider activity: Bullish
Insider buying pattern: Large purchase from CEO
Recent news: Strong H1 results
With that in mind, today we are going to highlight some interesting insider buying at Leifheit AG (LEI:GR). Leifheit is a German company that develops, produces and distributes household goods such as laundry, cleaning, and kitchen products. It is listed on the XETRA and currently has a market capitalisation of €286 million.
Insider buying: large CEO purchaseAn insider transaction that has caught our attention here is a large purchase from Chairman and CEO Henner Rinsche. Records show that on 13 August, the insider purchased 34,500 Leifheit shares at a price of €29.99 per share. The total cost of the transaction was €1.03 million.
Source: 2iQ Research
Buying at higher pricesThis insider transaction looks interesting for several reasons. Firstly, it’s a substantial purchase, both in nominal and relative terms. This purchase has increased the size of the insider’s holding by 14%.
Secondly, Leifheit shares have had a good run recently. Over the last six months, the stock has risen from around €22 to €30. The fact that the Chairman and CEO has been willing to buy near the €30 level suggests that he still sees value after the recent share price rise.
Strong H1 resultsLeifheit released an excellent set of half-year results in August. For the period, group turnover was up 7.3% year on year to €130.4 million, while EBIT was up 76% to €8.8 million. The positive earnings growth over the first half of the year was primarily due to the group’s systematic implementation of its ‘Scaling Up Success’ growth strategy. “The consistent implementation of our growth strategy is paying off,” said Rinsche.
All things considered, we see this insider purchase as a bullish signal. Leifheit has momentum right now, and Rinsche clearly believes that the stock can keep rising.