Insider transaction activity can give investors a more complete view of activity within the world’s publicly-listed companies. No one knows a company’s prospects or product better than its leaders.
Here, we are going to highlight an interesting insider purchase at SSP Group PLC. SSP Group is a British multinational catering company that operates food and beverage concessions in travel locations such as airports and train stations. It is listed on the London Stock Exchange and currently has a market capitalization of £1.8 billion.
SSP Group: director dealing
Our records show that on 23 December, SSP Chairman Mike Clasper purchased 31,000 shares at a price of £3.23 per share. This purchase, which cost the insider a total of £100,000, increased his holding to 71,000 shares.
This director deal looks bullish for a few reasons. Firstly, it is a substantial purchase – it has boosted the size of the Chairman’s holding by 78%. This suggests that the Chairman is confident that the stock is set to rise. Our data shows that it is the largest insider purchase at SSP for several years.
Secondly, Clasper has significant industry experience. Previously, he was Chief Executive of UK airport operator BAA PLC. This means that he is likely to have a good understanding of airport and aviation trends.
Travel recovery in 2021
SSP Group was impacted significantly by the coronavirus pandemic in 2020 as the global travel industry was hit hard. For the year ended 30 September, revenue was down 48% at constant currency.
Looking ahead, however, the company seems to be confident that travel will pick up in 2021. It is also confident that it will be able to capitalize on the recovery.
"Whilst we expect passenger numbers to remain subdued over the winter, we are optimistic that, alongside good progress with the vaccination program, we will see a significant upturn in both domestic and international travel from the Spring. We are ready to respond quickly. The actions we are taking to rebuild the business will put us in a strong position to capitalize on the recovery as well as future new business opportunities, enabling us to deliver long term sustainable growth for the benefit of all our stakeholders" the company stated in December.
In light of this expected recovery, we see the insider buying here as bullish.