Insider buying can provide valuable investment insights to investors. Insiders are some of the most informed participants in the market and if they are buying stock, it is usually because they think the share price is too low.
Here, we are going to highlight insider buying at Wienerberger AG (WIE:AV). Wienerberger specializes in producing building and infrastructure materials such as bricks, clay roof tiles, clay blocks, concrete paving and pipes. Operating in 29 countries, it is the largest producer of bricks in the world. It’s listed on the Vienna Stock Exchange and currently has a market capitalization of €3.3 billion.
Wienerberger AG: Insider Buying
Our insider transaction data shows that between 27 and 28 September, the CEO of Wienerberger, Heimo Scheuch, bought 10,000 WIE shares at a price of €30.06 per share. This purchase cost the CEO approximately €300,000.
Meanwhile, on 28 September, the CFO of Wienerberger, Gerhard Hanke, made a smaller purchase, picking up 1,000 shares at a price of €29.50 and spending €29,500 on the stock.
Top-Level Insider Buying
These transactions came to our attention as two of the most senior figures within the business have bought shares in tandem. The CEO and CFO are likely to have access to more information than most other insiders within the company and it is therefore significant that they are both buying stock simultaneously.
It's worth noting that Mr. Scheuch – who has been at the company since 1996 – has a background in corporate finance which means he is likely to be competent at valuing businesses. Mr. Hanke has been at Weinberger for over 20 years and has operational experience within the business as well as financial experience. He has been responsible for M&A transactions and has successfully overseen strategic growth projects.
Strongest First Half Results in Company History
Wienerberger produced an excellent set of figures for the first half of 2021.
The company posted group revenues of €1,867.5 million for the period which was up 14% on the previous year and a record for the first half. EBITDA of €308.4 million was an increase of 21% on H1 2020. The record numbers were driven by outstanding performances from all three of the business units. In North America growth was driven by demand for new build, as well as very high demand in the infrastructure division.
Looking ahead, the group said that EBITDA for the full year is expected to be between €620 million and €640 million, which was slightly above previous guidance.
“Value creation from our announced acquisitions and the success of our ongoing transformation into a full-range provider of smart system solutions, especially in energy and water management, will continue to drive earnings growth in the second half of the year,” commented Mr. Scheuch.
Given these excellent results and positive outlook statement, we see the recent insider trading at the company as bullish. It indicates that confidence is high in the business at the very top and that key insiders believe that the market is undervaluing Wienerberger’s shares.