Top-level corporate insiders such as CEOs tend to have the most up-to-date information on their companies. If they’re buying company stock, it’s generally a sign that the outlook for the company is favorable.
In this report, we are going to highlight some insider buying at Virbac SA (VIRP:FP). Virbac is a French veterinarian pharmaceutical company that specializes in the development and production of vaccines and medicines for domestic animals and livestock. It is listed on the Euronext Paris and currently has a market capitalization of €1.9 billion.
Virbac SA: Insider Buying
Our records show that on 8 February Virbac’s CEO Sebastian Huron bought 1,960 VIRP shares at a price of €215 per share. This purchase cost the insider approximately €421,000.
High Trading IQ
This insider buying activity is significant for a couple of reasons. Firstly, this purchase represents the largest insider purchase at Virbac within a quarter for several years. Our Insider Model views this buying activity as bullish.
Secondly, our data shows that Huron has a good track record when it comes to the timing of his purchases and sales in the company. Back in late 2018 and early 2019, the insider purchased stock on a number of occasions when the share price was below €150. He then sold into share price strength during 2019, offloading some shares for more than €230 per share.
Solid Full-Year Results
Virbac recently posted a solid set of fourth-quarter and full-year results.
For Q4, revenue was up 2.6% at constant rates, with all areas except the US experiencing year-on-year growth. Meanwhile, for the full year, revenue was up 5.7% at constant exchange rates.
Looking ahead, the group said that it anticipates revenue growth at constant rates and scope of between 3% and 5% in 2021. It also said that it expects its operating profit-to-revenue ratio to benefit from the favorable impact of the activity in the past year.
Given these solid results, we see the insider buying here as a bullish signal.