Top-level corporate insiders such as CEOs, CFOs, and Chairmen tend to have the most up-to-date information on their companies. If these individuals are buying company stock, it’s often worth taking a closer look.
In this report, we are going to highlight some interesting insider buying at TeamViewer AG (TMV:GR). TeamViewer is a German technology company that offers cloud-based products that support remote work and collaboration. Globally, the company has more than 600,000 customers with its software installed on more than 2.5 billion devices. The company is listed on Deutsche Börse’s Xetra and currently has a market capitalization of €5.7 billion.
TeamViewer: Insider Buying
Our insider transaction data shows that between 5 August and 9 August, three top-level insiders at TeamViewer bought stock.
Those who picked up stock were:
- CFO Stefan Gaiser (50,000 shares)
- Chairman and CEO Oliver Stein (134,849 shares)
- Chairman of the Supervisory Board Abe Peled (25,000 shares)
Combined, these insiders spent around €7.2 million on TMV stock.
This insider trading activity stands out for a couple of reasons. Firstly, the three insiders have spent a substantial amount of money on stock. This suggests that they are very confident the stock is set to move higher.
Secondly, both the CEO and the Chairman of the Supervisory board have investment management backgrounds. Mr. Steil – who has been CEO since 2018 – was previously Partner at the international Private Equity firm Permira. There, he built up and headed Permira’s Portfolio Group, which works with global deal teams across all sectors on designing and delivering value creation plans for Permira funds’ portfolio companies. Meanwhile, Mr. Peled is a partner at Peled Ventures and senior adviser to the Permira Private Equity Tech Group. Given their backgrounds, these insiders are likely to have a good understanding of the company’s intrinsic value.
TeamViewer recently posted a solid set of Q2 results.
For the period, billings rose 18% at constant currency to €121.6 million, while revenue rose 7% to €122.8 million. Adjusted EBITDA of €57 million was in line with the figure from Q2 2020 due to the fact the company invested heavily for future growth during the quarter. At the end of the period, the group had 623,000 subscribers, up from 534,000 at the end of Q2 2020.
Looking ahead, TeamViewer advised that, thanks to a “significant uptick” in trading performance in June, it was confident it would deliver on its targets and continue its sustainable growth path in the second half of the year.
“In Q2, we have heavily invested in our future growth while maintaining industry-leading profitability. Our recent investments in our salesforce and the increasing demand in the enterprise segment will further allow us to build on this momentum in the second half of 2021,” commented CFO Stefan Gaiser.
In light of these results and the outlook, we see the insider buying here as a bullish indicator.