Mytilineos SA (MYTIL:GA)
12-month performance: +4%
Insider activity: Bullish
Insider buying pattern: Large purchase from member of management team
Recent news: Solid H1 results
Insider buying can provide clues about a stock’s potential. Insiders sell company stock for many reasons. But they only buy stock for one reason – they expect it to go up.
Here, we are going to flag some insider buying at Mytilineos SA (MYTIL:GA). Mytilineos is a Greek industrial company that specializes in metallurgy, engineering, procurement and construction (EPC), and electric power. It is listed on the Athens Exchange and currently has a market capitalization of €1.4 billion.
Mytilineos: insider buying
What looks interesting here is a series of purchases from Nikos Papapetrou, General Manager Renewables & Storage Development Business Unit, in the second half of September and early October. Our records show that, over this period, the insider acquired 453,637 Mytilineos shares. In total, he spent approximately €4 million on stock.
Source: 2iQ Research
This insider activity stands out for several reasons. Firstly, Papapetrou has purchased a substantial number of shares. These purchases represent the largest amount of insider buying within a quarter at Mytilineos for several years. Secondly, the insider has purchased stock quite aggressively. This suggests that he is confident that the stock is undervalued at present.
Renewable energy projectsMytilineos posted a solid set of half-year results in September, considering the economic backdrop. Turnover and EPS stood at €927 million and €0.928 respectively, down 6.5% and 4.5% on the same period last year.
The company advised that, due to its structural strategic advantages, it managed not only to effectively mitigate the shock and turbulence caused by the Covid-19 crisis, but also to lay the foundations for further growth and better performance in the future.
It also said that going forward, it will be focusing on the execution of innovative, first-of-kind, renewable energy projects.
The recent buying from Papapetrou suggests that he is confident about the future and that he expects the stock to rise. We see this insider buying as a bullish signal.