Insider Buying

Insider Buying Report: Sinch AB (SINCH:SS)

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Sinch AB
(SINCH:SS)
12 months:
+11%
Activity:
Bullish
Pattern:
Large purchase from CEO
News:
Good Q3 results
Sinch AB
(SINCH:SS)
12 months:
+11%
Activity:
Bullish
Pattern:
Large purchase from CEO
News:
Good Q3 results

If a CEO is buying shares in their own company, it’s often worth investigating the stock further. These insiders tend to have an intimate understanding of their businesses and are usually way ahead of analysts when it comes to revenue and earnings trends.

In this report, we are going to highlight a large CEO purchase at Sinch AB (SINCH:SS). Sinch is a Swedish business that offers a cloud-based messaging platform. The company, which operates in nearly 50 countries worldwide, serves eight out of the 10 largest US technology companies. It is listed on the OMX Nordic Exchange Stockholm and currently has a market capitalization of SEK 85.2 billion.

Sinch AB: Insider Buying

Our insider transaction data shows that on November 23, Sinch’s CEO Oscar Werner bought 35,000 shares at a price of SEK 121.47 per share. This trade cost the insider SEK 4.3 million (approx. USD $475,000) and increased his holding to 50,000 shares.

The graph represents Sinch AB' price history, with significant buy and sell events highlighted.

High-Conviction Buy

There are a couple of things that stand out about this trade from the CEO.

The first is that he has spent a lot of money on stock and increased the size of his holding significantly. This suggests he is very confident the stock is set to move higher.

The second is that the trade comes shortly after two institutional investors spent millions on stock. Our data shows that on November 19, pension fund AMF Pensionsforsakring AB picked up 1.05 million Sinch shares, spending approximately $15 million on stock. Meanwhile, between November 13 and November 17, Neqst D2 AB bought 3.2 million shares, spending approximately $44 million on stock. This indicates that Werner is not the only one who is confident the stock is set to rise.

Strong Growth

Sinch’s results for the third quarter of 2021 showed that the company is growing at a rapid rate right now.

For the three months to the end of September, net sales amounted to SEK 3,938 million, up 122% year on year. Meanwhile, profit after tax for the quarter came in at SEK 266 million versus 96 million a year earlier. Basic earnings per share were SEK 0.37 versus SEK 0.16 in Q3 2020.

“As in the previous quarters, we have continued to see broad-based growth across different customer segments and geographies,” said Mr. Werner.

During the quarter, the group announced several large acquisitions. On September 22, it announced that it would be acquiring MessengerPeople, a leading German supplier of B2C conversational messaging software that serves more than 60,000 customers.

Meanwhile, on 30 September, it announced that it had entered into a definitive agreement to acquire Pathwire, a leading cloud-based email delivery platform that serves over 100,000 businesses including Lyft, Microsoft, and DHL.

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

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