Insider Buying

Insider Buying Report: Smurfit Kappa Group PLC (SKG:ID)

Smurfit Kappa Group PLC
(SKG:ID)
12 months:
-13.78%
Activity:
Bullish
Pattern:
Purchases from two insiders including Chairman
News:
Q1 update
Smurfit Kappa Group PLC
(SKG:ID)
12 months:
-13.78%
Activity:
Bullish
Pattern:
Purchases from two insiders including Chairman
News:
Q1 update

Corporate insiders tend to have superior knowledge of their firms’ operating, financing, and investing activities. If they are buying company stock, it’s generally a bullish signal.

In this report, we are going to highlight some interesting insider buying at Smurfit Kappa Group PLC (SKG:ID). Smurfit Kappa is a paper packaging company that operates in the Americas and Europe. It is Europe's leading corrugated packaging company and one of the largest paper-based packaging companies in the world. It is listed on both the London Stock Exchange and the Euronext Dublin and currently has a market capitalization of €8.3 billion.

Smurfit Kappa Group: Insider Buying

Our insider transaction data shows that between May 19 and May 20, two insiders at Smurfit Kappa bought stock. Those who made purchases were:

  • Chairman Irial Finan (5,000 shares @ €35.90 per share)
  • Board member Frits Beurskens (1,950 shares @ €36.87 per share)

Combined, the two insiders spent around €250,000 on stock.

The graph represents Smurfit Kappa Group PLC' price history, with significant buy and sell events highlighted.

Notable Trades

This trading activity is worth highlighting for a couple of reasons. Firstly, the two insiders have spent a considerable amount of money on stock. Our data shows that this buying activity represents the largest amount of insider buying at SKG within a quarter since the last quarter of 2018.

Secondly, Mr. Beursken has increased the size of his holding by 37%. Mr. Beursken has significant company and industry experience. He joined the Kappa Group in 1990 and held various Managing Director positions until his appointment as its President in 1996 which he held until the merger with Smurfit. He is also the former Chairman of both the Confederation of European Paper Industries and the International Corrugated Cases Association. This experience means that he is likely to have a good understanding of SKG’s prospects.

Price Rises

Smurfit Kappa recently posted a solid set of first-quarter results given the inflationary environment.

For the period, revenue was up 33% year on year to €3,024 million. Meanwhile, EBITDA was up 33% to €514 million with an EBITDA margin of 17%. CEO Tony Smurfit told Reuters that the company was able to increase its prices by 8-10% during the quarter.

Looking ahead, the group was confident that it can continue to navigate the inflation crisis.

“As we enter the second quarter, demand continues to be good with progressive corrugated price recovery. Cost increases and supply constraints remain a feature of our business which is being dealt with through the dedication of our people and through active price recovery. We remain confident in the future prospects of our business and our first quarter performance, together with our ongoing investment program, sets a strong foundation for 2022 and beyond,” said Mr. Smurfit.

In light of this update, we see the insider buying here as a bullish indicator.

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