Corporate insiders tend to have the most up-to-date information on their companies’ operations. If these individuals are buying company stock, it’s often a sign that business performance is strong and that the outlook for the stock is favorable.
In this report, we are going to highlight some interesting insider buying at NOTE AB (NOTE:SS). NOTE is one of northern Europe’s leading contract manufacturing partners for electronics products. Its services include early-stage engineering services, batch production, and advanced aftermarket services. The company is listed on the OMX Nordic Exchange Stockholm and currently has a market capitalization of SEK 5.7 billion.
NOTE AB: Insider Buying
Our insider transaction data shows that on February 4, board member and majority shareholder Johan Hagberg bought another 5,500 shares at a price of SEK 189.58 per share. This trade cost the insider SEK 1.04 million (approx USD $111,500).
This trade is worth highlighting due to the fact that Mr. Hagberg – who is a professional investor – has made some very well-timed trades in the recent past. In June 2021, for example, he added to his holding near the SEK 100 mark. Since then, the stock has risen as high as SEK 245.
Additionally, Mr. Hagberg has a background in mathematics and economics. So, he is likely to have a good understanding of the stock’s intrinsic value.
NOTE’s recent year end report for 2021 showed that the company has a lot of momentum right now.
For the year, sales were up 41% to a record SEK 2,643 million. Meanwhile, operating profit was up 68% to SEK 251 million. Profit after tax amounted to SEK 194 million, up 68% year on year.
The group noted that it ended the year “very strong”, achieving its highest ever quarterly sales figure in Q4.
Looking ahead, management was very confident that the company can continue to grow.
“We expect a very strong sales development in 2022. Despite the ongoing pandemic and the challenging situation in the component market, we see good opportunities to achieve growth of around 50% in Q1. The conditions for continuing our positive earnings trend are very good,” said Johannes Lind-Widestam, CEO and President.
In light of these results, we see the insider buying here as a bullish indicator.