Top Executives at Befesa SA Raise Their Holdings

A company's internal Information can be a game-changer when it comes to decision-making regarding a particular stock, and insider trading can provide exceptional insights as company insiders are aware of the firm's conditions.

In this report, we are going to analyze some intriguing insider buying activity at a services organization based in Luxembourg. Befesa SA (BFSA:LU) specializes in the collection and recycling of steel dust and aluminum residues, as well as the provision of other related services and logistics. It is listed on the Frankfurt Stock Exchange and currently has a market cap of around €1.17 billion.

Insider Buying

Our data shows that between September 21 and 25, both CEO and Executive Chairman Asier Zarraonandia Ayo and Javier Molina Montes increased their holdings in Befesa stock.

Mr. Molina made the larger investment among both insiders, spending nearly €281,000 on 10,000 shares at per share value of €28.10. On the other hand, Mr. Zarraonandia also bought 10,000 shares, investing nearly €277,700 at per per-share value of €27.77.

The two insiders made an accumulative investment of around €558,700.

Industry Experience

Both of the insiders possess a pivotal position at the service-oriented firm and have been attached to it for around two decades.

Mr. Zarraonandia has been with Befesa since 2006 and prior to that he was a senior audit manager and consultant for Arthur Andersen; a specialist in mergers and acquisitions in the industrial sector.

Concurrently, Mr. Molina has managed Befesa since 2000, when he was appointed Chief Executive Officer of Befesa Medio Ambiente. From 1989 to 1993, he was general director of Tecsa and prior to that, from 1983 to 1988, was an investment banker at Banco de Progreso.

Given their solid backgrounds, their recent trading activity is undoubtedly notable.

Impressive H1 ‘23

Befesa SA unveiled its results for H1 2023, which proved to be rather impressive.

The company's revenue rose by 8% to €615 million in H1 2023, driven mainly by zinc refining operations. Adjusted EBITDA, however, decreased to €95 million (from €118 million in H1 2022) due to lower zinc market prices and unfavorable zinc treatment charges.

The detailed business review for H1 2023 states a 7.5% YoY increase in total revenue to €615.5 million, mainly from contributions by the zinc refining operations in the US.

Considering these earnings, the above case of insider buying would be seen as a bullish development.