CFO purchases can be extremely informative insider transactions. CFOs have considerable insights into their firms’ financial activities, and some studies have found that these insiders earn higher profits following their purchases of company shares than CEOs.
In this report, we are going to highlight a large CFO purchase at Nexi SpA (NEXI:IM). Nexi is a European FinTech company that provides secure payment solutions to people, businesses, and financial institutions. The group, which is present in more than 25 countries, was formed by the merger and integration of Nexi, Nets, and Sia – three major players in the European payments space. The company is listed on the Borsa Italiana and currently has a market capitalization of €16.3 billion.
Nexi SpA: Insider Buying
Our data shows that on February 14, CFO Bernardo Mingrone bought 80,000 NEXI shares at a price of €12.57 per share. This trade cost the insider just over €1 million.
Mr. Mingrone, who has served as CFO since 2016, has considerable experience in the banking and payments industries. Previously, he was Group Chief Financial Officer of Unicredit Group, and Deputy General Manager in charge of Finance and Operations of Banca Monte dei Paschi di Siena.
He also has experience in asset management and investment banking. Earlier in his career, he spent time in investment banking at Lehman Brothers and JP Morgan before joining Pioneer Global Asset Management as Group Chief Financial Officer and Head of Strategy. This background means he is likely to have a good understanding of his company’s intrinsic value.
What stands out about this purchase from Mr. Mingrone is its size. The fact that the insider has spent over €1 million on shares suggests that he is confident that the stock is set to move higher.
Solid Growth in 2021
Nexi’s recent preliminary results showed that the company is growing at a healthy rate right now.
For the year, total group revenue amounted to €3,042 million, up 10.0% year on year. Meanwhile, EBITDA came in at €1,422 million, up 13.6.1% year on year. The company noted that group revenues in FY21 reflected a strong financial performance across geographies with Italy, the DACH Region, and Poland growing double‐digit compared to 2020 level.
“The completion of the mergers with Nets and SIA in 2021 was a key milestone in our journey to create the European PayTech, driving the transition to a cashless Europe," commented Paolo Bertoluzzo, CEO of Nexi Group. "Our Group delivered a solid double‐digit revenue and EBITDA growth and delivered the previously announced 2021 Ambition, despite the Omicron variant towards the end of the year,'' he added.
Looking ahead, Nexi aims to achieve net revenue growth between 7% and 9% for 2022, along with EBITDA growth between 13% and 16%. It also expects to end the year with way less leverage.
In light of these solid results, we see the insider buying here as a bullish indicator.