Corporate insiders have far more information on their companies than outsiders. If these individuals are buying company stock, it’s worth taking a closer look.
In this report, we are going to highlight some recent insider buying at Nu Skin Enterprises Inc (NUS:US). Nu Skin is a US company that develops and distributes premium quality anti-aging products. Operating throughout Asia, the Americas, Europe, Africa, and the Pacific, it offers a wide range of personal care and nutritional supplement products. The company is listed on the New York Stock Exchange and currently has a market capitalization of $2.5 billion.
Nu Skin Enterprises: Insider Buying
Our records show that on 17 February, two insiders at Nu Skin bought stock. Chairman Steven Lund purchased 20,850 shares at a price of $48.05 per share. Meanwhile, Lead Independent Director Daniel Campbell bought 9,910 shares at an average price of $50.65. Then on 18 February, Daniel Campbell bought 10,110 shares at an average price of $49.49. Combined, these two insiders spent around $2 million on NUS stock.
Decades Of Experience
This insider trading looks interesting due to the fact that both insiders have significant company experience. Mr. Lund was an early co-founder of Nu Skin and has served in multiple roles at the company since its inception including as CEO from 1996 to 2003. Mr. Campbell has served as a director since March 1997. Campbell has also been a managing general partner of EsNet, Ltd., a venture capital firm, since 1994. This experience means these insiders are likely to have a good read on the company’s prospects.
It’s also worth pointing out that these are large insider purchases. This buying activity represents the largest amount of insider buying at Nu Skin within a quarter for several years.
Nu Skin posted an impressive set of fourth-quarter and full-year results recently.
For the quarter, revenue was up 28% year on year to $748 million, while earnings per share were up 94% to $1.40. For the full year, revenue increased 7% to $2.6 billion and EPS increased 17% to $3.63. The number of customers was 1,557,302 at the end of Q4, up 34% year on year.
Looking ahead, the company said that it expects top-line growth of 18% to 24% in Q1. For the full year, it is projecting 5% to 9% revenue growth and EPS of $3.80 to $4.10.
Commenting on the results, CEO Ritch Wood said: “We strengthened our balance sheet, repurchased more than five million shares of stock, innovated in our product pipeline, enhanced our digital capabilities and established a path for double-digit earnings growth going forward."
"We expect a strong 2021 driven by our robust product pipeline and digital initiatives combined with steady growth in both our customers and sales leaders," he added.
Since these results, Nu Skin's share price has declined. The insider buying here suggests that insiders believe this share price weakness is a buying opportunity. We see this insider buying activity as bullish.