If multiple insiders at the same organization are buying company stock simultaneously it’s often worth a closer look. This buying pattern – which is known as ‘cluster buying’ – is a particularly strong insider trading signal.
In this report, we are going to highlight a cluster buying pattern at a small Norwegian company, MPC Container Ships ASA (MPCC:NO). MPC Container Ships is a shipping company that focuses on the ownership and operation of smaller container vessels deployed in regional and intra-regional services. The group, which has around 65 vessels in its portfolio, was initiated by investment company MPC Capital AG in 2017. It is listed on the Oslo Stock Exchange and currently has a market capitalization of NOK 8.08 billion.
Insider buying at MPC Container Ships
Our data shows that since September 19, five insiders at MPC Container Ships have purchased stock. We have listed those who have bought stock below:
- CEO Constantin Baack
- CFO Benjamin Pfeifer
- Chairman Ulf Hollander
- Director Axel Schroeder
- Affiliated company Ferrostaal GMBH
Combined, the five insiders have invested around USD $1.2 million in MPCC stock.
These insiders are likely to have a good understanding of MPC Container Ships’ prospects.
Mr. Baack has served as CEO of the company since its foundation in April 2017. Before this, he held a number of top-level positions in the shipping industry including Managing Director of Ahrenkiel Steamship and Head of Shipping of the MPC Group. He was also previously CFO of MPC Capital AG.
Dr. Schroeder has extensive experience at MPC Group, having held positions within the group since 1990. Currently, he is managing partner of MPC Münchmeyer Petersen & Co. GmbH and MPC Participia GmbH.
Meanwhile, Mr. Holländer previously worked at shipping group Hamburg Süd where he was head of the finance and accounting department.
Given the industry experience these insiders have, it’s fair to assume they know what they are doing here.
MPC Container Ships recently posted a strong set of H1 results.
For the six-month period, revenues amounted to USD $151.7 million, up from $68.8 million a year earlier. Meanwhile, EBITDA was $111.8 million versus $31.9 million the year before. Net profit came in at $90.1 million compared to $12.0 million in H1 2021.
On the back of these results, the company raised its full-year revenue and EBITDA guidance to $570-585 million and $470-490 million respectively. It also raised its quarterly dividend to USD $0.15.
Looking ahead, management was confident about the future.
“Based on our strong earnings prospects and EBITDA backlog, MPCC has the potential to pay out significant dividends and at the same time operate with an industry-low financial leverage, providing the financial flexibility to selectively capture attractive growth opportunities as they arise,” said Mr. Baack.
In light of these results, we see the insider buying here as a bullish indicator.