When a top-level insider buys company stock, investors should take note. It’s not a stretch to say that these individuals are some of the most informed participants in the market.
In this report, we are going to highlight some interesting insider buying from a top-level insider at Shift4 Payments Inc (FOUR:US). Shift4 Payments is an American FinTech company that focuses on payments. An expert in commerce-enabling technology, it powers billions of transactions annually for hundreds of thousands of businesses in virtually every industry. The company is listed on the New York Stock Exchange and currently has a market capitalization of $3.24 billion.
Shift4 Payments Inc: Insider Buying
Our data shows that between March 9 and March 14, Shift4’s Founder and CEO Jared Isaacman bought 237,958 FOUR shares at an average price of $47.9 per share. This buying activity cost the insider a total of $11.3 million and increased his holding to 334,742 shares.
Mr. Isaacman is likely to have an excellent understanding of Shift4’s operations and prospects. In 1999, he started the company in the basement of his family’s house when he was only 16 years old. Today, as CEO, he manages Shift4’s core divisions as well as the overall operations of the company.
What stands out about this trading activity is the fact that Mr. Isaacman has spent a substantial amount of money on stock, and boosted the size of his position significantly. This indicates that he is very confident the stock is set to move higher.
Shift4 Payments’ recent Q4 2021 results showed that the company continues to grow at a rapid rate.
For the quarter, end-to-end payment volume totaled $13.4 billion, up approximately 97% from Q4 2020. Meanwhile, quarterly gross revenue amounted to $399.4 million, up 89% from Q4 2020. Adjusted EBITDA came in at $44 million versus $26.7 million a year earlier.
On top of this, the group also announced two ‘transformational’ acquisitions that it believes will expand its reach across the globe. The first was that of The Giving Block – a fast-growing, profitable two-sided network to facilitate crypto donations to non-profits. The second was that of Finaro – a fast-growing, modern cross-border eCommerce payments platform driving transactions across Europe, UK, Japan, and Hong Kong. The group believes both deals will boost adjusted EBITDA in 2023.
In light of these developments, we see the insider buying here as a bullish indicator.