12-month performance: -35%
Insider activity: Bullish
Insider buying pattern: Large purchase from Chairman and CEO
Recent news: Solid H1 results
Top-level corporate executives and directors tend to have the most up-to-date information on their companies’ operations. If these insiders are buying company stock, it’s generally a bullish development.
In this report, we are going to flag some interesting insider buying at Orange (ORA:FP). Orange is one of the world’s leading telecommunications operators with presence in 26 countries and 145,000 employees worldwide. The company is listed on the Euronext Paris and currently has a market capitalization of €26 billion.
Orange: insider buying
What has caught our attention here is a large purchase from Chairman of the Board and CEO Stéphane Richard. Regulatory filings show that on 25 September, the insider purchased 20,000 shares at a price of €8.93 per share. The total cost of this purchase was €178,600.
Source: 2iQ Research
This insider purchase is worth highlighting for a few reasons. Firstly, it is a large purchase. It has increased the size of the insider’s position from 31,466 shares to 51,466 shares. That represents an increase of 64%.
Secondly, Richard has an above-average trading IQ. His 2iQ short-term IQ is 106 while his long-term IQ is 111. This indicates that his previous trades have been timed well.
It’s also worth pointing out that two other top-level insiders purchased Orange stock in August. Our records show that on 10 August, Delegate CEO Ramon Fernandez purchased 7,950 shares, while on 12 August, Delegate CEO Gervais Pellissier purchased 6,950 shares. So, Richard is clearly not the only insider that sees value here.
H1 resilienceOrange shares have underperformed this year. Year to date, the stock is down over 25%.
However, first-half results, issued in August were quite solid. For the period, revenue only declined 0.4%, while EBITDAaL decreased 1.8%. Meanwhile, Orange Cyberdefense and Orange Cloud for Business both performed well with revenues growing by 11% and 8% respectively. For the 2020 financial year, Orange said that it does not foresee any significant deviation with respect to its financial objectives.
"Orange has shown a remarkable level of resistance in the first half of the year. These results bear witness to our business’ resilience and its capacity for collective mobilisation in the face of this crisis,” commented Richard.
In light of these results, we see the insider buying here as a bullish signal. Clearly, the Chairman and CEO see value in the stock right now.