Insider buying can provide clues about a stock’s next move. Insiders sell company stock for a number of reasons. Yet they only buy stock for one reason – they expect it to rise.
In this report, we are going to highlight some interesting insider buying at Rogers Corp (ROG:US). Rogers is an American company that develops technologies for wireless infrastructure, power amplifiers, radar systems, hybrid-electric vehicles, high-voltage rail traction, laser systems, and wind and solar power conversion. It also creates solutions for protection, sealing, and energy management in smartphones, aircraft, and automobiles. It is listed on the New York Stock Exchange and currently has a market cap of approximately $2.6 billion.
2iQ’s data shows that two insiders at Rogers recently bought stock. On August 8, board member Armand Lauzon purchased 3,350 shares at a price of $150.04 per share. Then, on August 9, board member Anne Roby picked up 315 shares at a price of $148.06 per share. Combined, the two insiders invested around $550,000 in the company.
Large Stock Purchase
It’s the large $503K purchase from Mr. Lauzon that stands out here. Mr Lauzon has significant experience in the technology industry. Previously, he was President and CEO of C&D Technologies, Inc., a power conversion systems and electrical power storage company. Therefore, he is likely to have a good understanding of Rogers’ prospects.
The fact that he invested more than half a million dollars in the company suggests that he is very confident about the future. Our Insider Model views the recent trading activity as bullish.
Share Price Weakness
Rogers stock recently slumped after the company posted its Q2 results.
However, the results weren’t terrible. While net sales for the quarter were down 8% year on year to $230.8 million, both gross margin and operating margin were up on the prior-year period with gross margin coming in at 34.5% versus 34.3% a year earlier and operating margin hitting 12.1% versus 9.3% a year earlier. Meanwhile, free cash flow amounted to $4.2 million versus -$22.9 million in Q2 2022.
Looking ahead, management was optimistic in relation to the company’s prospects.
“Challenging market conditions tempered sales for the second quarter, but with our strong technology portfolio we remain extremely well positioned to benefit as demand improves. We continue to execute on our strategy to achieve our long-term growth targets, including the recent announcement that we are expanding our power substrate capacity to capitalize on the accelerating demand for silicon carbide devices in EV and renewable energy markets," said President and CEO Colin Gouveia.
In light of the increase in margins here, and the confidence from management, we see the insider buying as a bullish development.
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