12-month performance: +12.5% Insider activity: Bullish Insider buying pattern: Large purchase from CEO Recent news: Positive Q1 update
CEOs generally have deep insight into their own companies’ operations. If these insiders are buying stock, investors should take note.
Here, we are going to highlight a large CEO purchase at PZ Cussons PLC (PZC:LN). PZ Cussons is a UK-based manufacturer and distributor of personal care, home care food and nutrition and electrical products worldwide. It’s listed on the London Stock Exchange and currently has a market capitalization of £977 million.
PZ Cussons: insider buying
Regulatory filings show that on 25 September the CEO of PZ Cussons, Jonathan Myers, purchased 50,000 PZC shares at a price of £2.27 per share. The total cost of the purchase was £113,500.
Source: 2iQ Research
This purchase looks interesting for two reasons. Firstly, it is a sizeable purchase from the insider, which is what we like to see. This purchase suggests he is confident in the outlook for the company. It is the largest insider purchase at the company for several years. Secondly, our Insider Model views this purchase as positive.
Strong trading momentum
PZ Cussons issued a bullish Q1 update recently with revenue growing by 23%. Covid-19 has had a positive impact on the personal care and home care divisions. Consumers’ behavior has likely been irrevocably changed by Covid-19 and this impact is likely to continue into the long-term. The balance sheet has been further strengthened as net debt has lowered and the company is investing to drive further growth. The Nutricima milk business was disposed of at the end of September as expected.
In light of this news, we see the insider buying here as a positive signal. It suggests that the CEO expects the positive momentum in the share price to continue.
Disclaimer: Neither 2iQ Research GmbH nor its content providers are responsible for any damages or losses arising from any use of this information.
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