Insider transaction activity can provide powerful insights for investors. No one has more information on an organization’s products and prospects than its leaders. If these insiders are buying company stock, it’s a sign they’re confident about the future.
Here, we are going to highlight a large insider purchase at QIAGEN NV (QGEN:US). QIAGEN specializes in sample and assay technologies for molecular diagnostics, applied testing, and pharmaceutical research. The company is listed on both the New York Stock Exchange and the XETRA and currently has a market capitalization of $11.4 billion.
QIAGEN: insider buying
What has caught our attention here is a large purchase from CFO Roland Sackers. Regulatory filings show that in late August, the insider purchased 8,573 QGEN shares at a price of $52 per share. The total cost of this purchase was $445,796. The transaction increased his holding by 5.3%.
Source: 2iQ Research
This insider transaction activity looks interesting for a couple of reasons. Firstly, it’s a top-tier insider that has bought stock. Sackers joined QIAGEN in 1999 as Vice President Finance and has been CFO since 2004. He has been a member of the Managing Board since 2006. He’s likely to have an information advantage over other investors.
Secondly, this is not a stock that sees regular insider buying activity. Sackers’ purchase is the first insider purchase at QIAGEN in over two years. This means it deserves a closer look.
Launch of Covid-19 test
QIAGEN shares have risen recently after the company announced that it plans to launch a Covid-19 antigen test. The test, which could be available as soon as November, can provide results in 15 minutes and test about 30 samples in an hour. QIAGEN says that the test is correct in identifying negative cases at least 90% of the time.
In light of this development, we see the insider buying here as a bullish signal. The large purchase from the CFO indicates that the insider expects the stock to continue rising.