Insider Buying

Insider buying: Safestore Holdings CEO buys stock

Safestore Holdings
(SAFE:LN)
12 months:
-27.47%
Activity:
Bullish
Pattern:
Purchase from CEO
News:
Q3 trading update
Safestore Holdings
(SAFE:LN)
12 months:
-27.47%
Activity:
Bullish
Pattern:
Purchase from CEO
News:
Q3 trading update

If a CEO is buying company stock, it’s often worth investigating the stock further. CEOs tend to have an intimate understanding of their businesses and are usually way ahead of analysts and portfolio managers when it comes to revenue and earnings trends.

Here, we are going to highlight a large stock purchase from the CEO at Safestore Holdings (SAFE:LN). Safestore is a UK-based company that provides self-storage. There are 179 Safestore facilities in the UK, which makes it the largest self-storage operator in the region. The company also has around 50 stores in Europe. It’s listed on the London Stock Exchange and currently has a market capitalization of £1.7 billion.

Insider buying at Safestore

Our data shows that on October 3, CEO Frederic Vecchioli purchased 118,368 SAFE shares at a price of £8.39 per share. This purchase cost the insider around £1 million (approx. $1.1 million) and increased his holding by just over 5.9%.

Experienced CEO

We think this insider buying is interesting for two reasons.

Firstly, Mr. Vecchioli has been CEO at Safestore for close to a decade. This means he is likely to know the business, and the self-storage sector, intimately. He joined the company nearly 20 years ago after the company he founded was acquired by Safestore in 2004.

Secondly, Mr. Vecchioli has spent around £1 million on Safestore shares. This is a significant amount of money and it gives the impression that he is very confident the market has oversold the company’s shares.

Solid revenue growth

Safestore saw year-on-year revenue growth in all its regions during the third quarter.

For the period, group revenue was up 9.3% on the year before to £51.7 million. The UK was the strongest performer with like-for-like revenue growth of 10.7% while the company made good progress in Europe.

At the end of Q3, Safestore’s maximum lettable area stood at 7.67 million square feet. This was up around 10% on Q3 2021. Meanwhile, the pipeline stood at just over one million square feet. This is encouraging as that represents around 14% of the group’s current portfolio.

Looking ahead, management was confident about the group’s prospects.

“The business has demonstrated its inherent resilience in recent times and, with our recent and current trading, allows me to look forward with confidence. The first three quarters' trading performance has provided us with a strong base for the rest of the financial year and we anticipate that the business will deliver Adjusted Diluted EPRA Earnings per Share for 2021/22 in line with the previous guidance of at least 47p", said Mr. Vecchioli.

Having looked through the Q3 trading update, we see the insider buying activity here as a bullish development.

Recent Articles