Top-level insiders such as C-suite executives tend to have a good understanding of their companies’ operating activities. If these insiders are buying company stock, it’s often a sign that the outlook for the stock is attractive.
In this report, we are going to highlight some interesting buying from top-level insiders at Scandic Hotels Group AB (SHOT:SS). Scandic Hotels operates the largest and widest hotel network in the Nordic region. Benefiting from economies of scale, it operates around 280 hotels across 130 locations. It is listed on the OMX Nordic Exchange Stockholm and currently has a market cap of SEK 7.03 billion.
Insider buying at Scandic Hotels Group
Our data shows that three insiders at Sandic Hotels purchased stock between September 8 and September 15. Those who bought shares were:
- CFO Asa Wiren (14,500 shares @ SEK 34.22 per share)
- President and CEO Jens Mathiesen (30,000 shares @ SEK 33.36 per share)
- Board member Martin Svalstedt (30,000 shares @ SEK 33.98 per share)
In total, the three insiders spent around SEK 2.6 million (approx. USD $247,500) on company stock.
Holdings increased substantially
Both Mr. Mathiesen and Ms. Wiren have increased the size of their holdings substantially with their recent trades. Mr. Mathiesen’s purchase has increased his holding by 15%. Meanwhile, Ms. Wiren’s trade has increased her holding by 89%. This suggests the Executive Board members are quite confident that Scandic Hotels stock is set to move higher.
Scandic Hotels most recent results, for Q2 2022, showed that the company has a lot of momentum at present.
For the period, net sales were up 222% to a record SEK 5,276 million. Meanwhile, adjusted EBITDA amounted to a record SEK 1,083 million, up from SEK -364 million a year earlier. The company attributed the strong performance to the lifting of Covid-19 restrictions and increased activity in important metropolitan regions.
Looking ahead, management said that, based on the current booking situation, it expects a continued strong hotel market in the coming months. It added that it is running the company more efficiently and that this provides a supportive backdrop for continued strong profitability and cash flow, despite inflation and a potential weakening of the economy.
The company’s momentum is not reflected in the share price, however. Over the last month, the stock has fallen over 20%. Clearly, the insiders see value on offer here after the recent pullback. We see the insider buying as a bullish indicator.