Insider buying can provide investors with valuable 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 highlight insider transactions at Norma Group SE (NOEJ:GR). Norma Group manufactures and sells engineered joining technology solutions in Europe, the Middle East, Africa, the Americas, and the Asia-Pacific. It’s listed on the Frankfurt Stock Exchange and currently has a market capitalization of €1.4 billion.
Norma Group SE: Insider Buying
Regulatory filings show that on 12 May, a number of insiders purchased Norma stock. The COO, Friedrich Klein, purchased 2,230 NOEJ shares at a price of €44.64 per share. This purchase cost the insider approximately €100,000 and increased his holding by around 43%. The CFO, Annette Stieve, purchased 1,133 NOEJ shares at a price of €44.60, spending around €50,000. Additionally, the Chairman of the Management Board, Michael Schneider, purchased 2,275 NOEJ shares at a price of €44.64, at a cost of approximately €100,000.
This insider buying activity stands out because three top-level board members have purchased stock at the same time. Our data shows that this is the first insider buying activity at Norma Group for a year. This buying pattern tells us that there is positive insider sentiment at the top of the company.
Additionally, our data shows that the COO has increased his holding by a significant percentage. This suggests that he is very confident that the Norma Group share price will continue to climb.
Norma Group produced a strong set of Q1 figures. Sales were up 13% to €286.4 million versus Q1 2020. Encouragingly, the sales growth was due to an increase in demand in all major business segments across all regions. Adjusted EBIT was up 47% year-on-year to €36.9 million. The adjusted EBIT margin of 12.9% was significantly higher than the 9.9% adjusted EBIT margin a year prior.
“The good first quarter clearly shows that we are on the right track when it comes to setting the course for sustainably profitable growth. We are consistently aligning ourselves to the requirements of our customers and focusing on the strategic business fields of water management, industry applications, and electromobility. We consider 2021, which continues to be impacted by the pandemic, to be a transitional year that we will use to strengthen our strategic position for the future and become more profitable,” said Dr. Michael Schneider, CEO of Norma Group.
On the back of these strong results and optimistic outlook, we see the recent insider buying at Norma Group as bullish. It suggests that the top insiders believe that the strong demand for the company’s products will continue and that the shares will rise further.