Top-level Insiders at SGL Carbon SE Are Buying Stock

Top-level corporate insiders have deep insight into their companies’ operations. So, their stock purchases and sales can provide investors with valuable trading signals.

In this report, we are going to highlight some buying activity from top-level insiders at SGL Carbon SE (SGL:GR). SGL Carbon is a manufacturer of products and solutions based on carbon fibers and specialty graphites. Its products are used in the automotive, aerospace, and solar and wind energy industries, as well as by manufacturers of semiconductors, LEDs, and lithium-ion batteries. The company is listed on Deutsche Börse’s Xetra and currently has a market capitalization of around €979.33 million.

Buying From Top-tier Insiders

Our data shows that on June 22, both CFO Thomas Dippold and CEO Dr. Torsten Derr purchased SGL stock. Mr. Dippold picked up 13,750 shares at a price of €7.97 per share, spending around €110,000 on stock. Meanwhile, Dr. Derr added 32,679 shares at a price of €7.95 per share, investing around €260,000 in the company.

Trading Skill

Both of these insiders have made well-timed purchases in recent years.

For example, in June 2021, both insiders bought stock when it was trading near €6.50. In the months following these trades, the stock rose above €10.

Going back further, both bought SGL stock in November 2020 when it was trading around the €3.20 to €3.30 level. These trades turned out to be extremely profitable as the stock more than tripled in the following 10 months.

Solid Start to 2023

SGL Carbon recently posted a solid set of Q1 results, thanks to strong demand from the semiconductor industry.

For the period, sales increased by 4.7% to €283.7 million. Meanwhile, adjusted EBITDA rose by 9.0% to €40.1 million. Growth was boosted by the performance of the Graphite Solutions business unit, where sales jumped 17.8% after the company reallocated production capacities from the solar industry market segment to the semiconductor industry.

Looking ahead, the company confirmed its sales and earnings guidance issued in March. It added that long-term supply contracts in the semiconductor space will enable “future profitable growth”.

In light of these solid results, and the company’s exposure to the fast-growing semiconductor industry, we see the insider buying here as a bullish development.