Insider Buying

Insider Buying Report: Novo Nordisk A/S (NOVOB:DC)

Novo Nordisk A/S
(NOVOB:DC)
12 months:
+51%
Activity:
Bullish
Pattern:
Large purchase from member of Executive Management team
News:
Good Q4 results
Novo Nordisk A/S
(NOVOB:DC)
12 months:
+51%
Activity:
Bullish
Pattern:
Large purchase from member of Executive Management team
News:
Good Q4 results
On the left side of the blue shade image background, two photos of the laboratory are shown in triangle shape, and on the right side, the Novo Nordisk emblem is displayed.

Corporate executives tend to have deep insight into their firms’ operations and prospects. If these insiders are buying company stock, it’s generally a bullish signal.

In this report, we are going to highlight some interesting insider buying at Novo Nordisk A/S (NOVOB:DC). Novo Nordisk is a Danish healthcare company that’s focused on diabetes, obesity, and rare blood and endocrine diseases. Globally, it produces around 50% of the world’s insulin supply. The company is listed on the OMX Nordic Exchange Copenhagen and currently has a market capitalization of DKK 1,494 billion.

Novo Nordisk: Insider Buying

Our insider transaction data shows that on February 4, Doug Langa, Executive Vice President, North America Operations, purchased 2,420 American Depositary Receipts (ADRs) at a price of $99.57 per share. This trade cost the insider around $241,000.

The chart shows the price history of  Novo Nordisk A/S, with important purchase and sell events highlighted.

Industry Experience

Mr. Langa has considerable company and industry experience. He joined Novo Nordisk in 2011 as senior director of Managed Markets and since then, has been promoted on numerous occasions. In March 2017, he was appointed Senior Vice President, Head of North America Operations and President of Novo Nordisk Inc., and then in August 2017 he was promoted to Executive Vice President, continuing his responsibilities as Head of North America Operations and President of Novo Nordisk Inc.

Before joining Novo Nordisk, Mr. Langa held senior positions at GlaxoSmithKline and Johnson and Johnson. Given his background and experience, he is likely to have a good understanding of his company’s prospects.

Better-Than-Expected Outlook

Novo Nordisk recently posted a solid set of full-year 2021 results.

For the year, sales increased by 11% in DKK and by 14% at constant exchange rates to DKK 141 billion. Meanwhile, operating profit increased by 8% in DKK and 13% at constant currency to DKK 58.6 billion.

On the back of these results, the group declared a total dividend of DKK 10.40 per share (vs. DKK 9.10 in 2020). It also advised that it intends to initiate a new 12-month share repurchase plan of up to DKK 22 million.

Encouragingly, the healthcare company posted a better-than-expected full-year outlook for 2022. This year, it expects to generate sales growth of 6-10% along with operating profit growth of 4-8% in local currencies.

In light of these solid results, we see the insider buying here as a bullish indicator.

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