Top-level insiders tend to have a good understanding of their companies’ prospects. If they’re buying company stock, it’s a sign that they’re confident about the future and that they expect the stock to rise.
In this report, we are going to highlight large purchases from top-level insiders at Mativ Holdings Inc (MATV: US). Mativ is a global leader in specialty materials. The company, which was recently formed after the merger of Neenah and SWM, offers a range of critical components and engineered solutions designed to solve customers’ challenges. It’s listed on the New York Stock Exchange and currently has a market cap of $1.3 billion.
Insider buying at Mativ Holdings Inc
Our data shows that four insiders bought company stock in August within just a day or two of each other. These included the company CEO and three members of the Board:
- August 12 - CEO & President, Julie Schertell bought43,200 shares at two rates of $23.93 and $24.10. In total, these trades were worth around $1.04 million and raised her holding to 163,891 shares.
- August 12 – Chairman Dr. John Rogers purchased 1,000 shares for a stock price of $23.35. $23,183
- August 15 & 16 – 25,000 shares were purchased by Director Jeffrey J. Keenan this time at a value of $24.41 per share. $61,449
- August 15 – Director Anderson Davis Warlick also bought 10,000 shares at a slightly higher rate of $24.84 per share. $248,371
The total value of this cluster buying by the insiders was almost $1.37 million.
Ms. Schertell is likely to have a good understanding of Mativ’s prospects. Previously, she was President and CEO of Neenah, which merged with SWM to become Mativ. Before this, she held numerous leadership positions within the company, including Chief Operations Officer. What stands out here is that the insider has made a large purchase that has increased the size of her holding by approximately 220%. This suggests that she is very confident the stock is set to move higher.
Chairman John Rogers is a CFA Charterholder and also boasts three decades of experience as an investment professional. He is Invesco's former Global CEO of Institutional business.
Director Jeffrey Keenan has previously served as the President, COO, and Chief Compliance Officer at Roark Capital Group. In addition to this, has past experience as a senior leader and board member in over 20 companies and holds an MBA in Finance from the University of Chicago.
Last but not the least, Director Warlick also has an impressive career and is considered to be one of the most innovational leaders in the world of textile. In addition to serving as director, he is also the Chairman and CEO of Parkdale Inc, a private textile and consumer company.
Integration progressing well
Mativ’s management team appears to be very optimistic about the future now that the merger of Neenah and SWM is complete.
In Mativ’s recent Q2 results, management advised that year-to-date results have tracked to plan and that the company is poised to carry its momentum into the rest of 2022. It also advised that the primary 2022 EBITDA growth catalysts remain solidly intact.
Additionally, management said that the merger integration was off to a fast start and that it is very confident that its cost synergy plan will result in at least $65 million of savings, with a year-end 2022 exit run-rate of approximately $20 million.
"Mativ’s future is rich with value creation opportunities, with the potential to accelerate top-line growth and expand margins through numerous organic and synergy-related initiatives. Our increased scale also enables greater strategic portfolio optionality as we focus our resources on the company's fastest growing and most profitable product areas. Our global teams are moving forward together with shared purpose and conviction, and we look forward to delivering on the promise of this transformative combination," commented Ms. Schertell.
It seems the market doesn’t share management’s enthusiasm, however. At present, Mativ stock trades at just six times this year’s forecast earnings.