Insider Buying

Insider Buying Report: Plantronics Inc (POLY:US)

Plantronics Inc
(POLY:US)
12 months:
+121%
Activity:
Bullish
Pattern:
Purchases from CEO and COO
News:
Good Q1 results
Plantronics Inc
(POLY:US)
12 months:
+121%
Activity:
Bullish
Pattern:
Purchases from CEO and COO
News:
Good Q1 results

When we see top-level insiders at a company buying stock, we usually take a closer look. Top-level insiders tend to have a superior level of information on their companies and often use this information edge to their advantage.

In this report, we are going to highlight some buying from top-level insiders at Plantronics Inc (POLY:US). Plantronics designs and manufactures integrated communications solutions for individuals, small businesses and corporate customers. Its products, which include wireless headsets, business phones, and conference phones, are used by 100% of Fortune 500 companies. The company is listed on the New York Stock Exchange and currently has a market capitalization of $1.1 billion.

Plantronics: Insider Buying

Our insider transaction data shows that in September, two top-level insiders at Plantronics have bought stock. On 7 September, CEO Dave Shull picked up 3,500 shares at a price of $30.00 per share, spending $105,000 on stock. Then, on 13 September, COO Warren Schlichting purchased 2,000 shares at a price of $28.94, spending $58,000 on the stock.

First Buys Since Early 2020

This buying activity is worth highlighting due to the fact that insider purchases at Plantronics are quite rare. These two buys represent the first insider buys at Plantronics since the first quarter of 2020. This would suggest that the insiders see a lot of value in the stock right now. Our Insider Model views these purchases as very bullish.

20% Revenue Growth

Plantronics is benefiting from the shift to hybrid work at the moment.

In the company’s Q1 fiscal 2022 results, it reported revenue of $431 million, up 20% year on year, along with Non-GAAP diluted earnings per share of $0.60 versus $0.33 a year earlier. Revenue growth was boosted by strength in Video and rebounding Voice demand, which grew 94% and 34% respectively, reflecting the continued need for reliable, high-fidelity solutions for hybrid work and the return to the office. Both the revenue and earnings figures beat the company’s 13 May guidance as well as analysts’ forecasts. Analysts had been expecting revenue of $419.80 million along with earnings per share of $0.46.

During the quarter, Plantronics entered into an OEM agreement with a global PC manufacturer to provide high-quality, professional-grade headsets that can be purchased separately or as a bundled solution. It also entered into a strategic partnership with CLIPr, sophisticated video analysis and management platform that applies AI and machine learning to index and analyze video content.

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

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