Insider Buying

Two insiders at Senior PLC buy stock

Senior PLC
(SNR:LN)
12 months:
-20.55%
Activity:
Bullish
Pattern:
Purchase from Chairman and Independent Director
News:
Half-year results
Senior PLC
(SNR:LN)
12 months:
-20.55%
Activity:
Bullish
Pattern:
Purchase from Chairman and Independent Director
News:
Half-year results
The image's background depicts airplane window view of sky during sun set, with the blog introduction mentioning the insider's investment of £240K on top.

Corporate executives and directors tend to have superior information in relation to their firms’ operating activities. If these insiders are buying company stock, it’s generally a bullish signal.

Here, we are going to highlight insider buying at Senior PLC (SNR:LN). Senior designs, manufactures, and markets high-technology components and systems for the principal original equipment producers in the aerospace, defense, land vehicle, and power and energy markets worldwide. The company is listed on the London Stock Exchange and currently has a market capitalization of £478 million.

Insider buying at Senior PLC

Our insider transaction data shows that between September 30 and October 7, two insiders at Senior bought stock. Those who bought shares were:

  • Chairman of the Board Ian King (200,000 shares @ £1.17 per share)
  • Independent Director Barbara Jeremiah (5,000 shares @ £1.25 per share)

In total, the two insiders spent around £240,000 (approx. $267,000) on Senior stock.

Previous trades were timed well

This insider buying caught our eye for a couple of reasons.

Firstly, previous insider purchases at Senior have been timed well. Back in April 2021, we published a blog highlighting buying activity from several insiders including Mr. King. In the months after this report, Senior’s share price rose significantly. It is interesting that Mr. King has recently bought a large amount of stock at a price similar to the level he picked up stock back in April 2021. This suggests he is confident that the shares will bounce off these levels.

Secondly, Mr. King has considerable industry experience. Previously, he was Chief Executive at defense giant BAE Systems PLC for nine years. Prior to this, he was COO for the UK and Rest of the World at BAE Systems for 10 years. This means he is likely to know the markets that Senior operates in extremely well. He has been at Senior for five years now which means he has had time to understand the inner workings of the business.

Strong momentum

Senior posted strong half-year results that saw revenue and adjusted operating profit move significantly higher versus H1 2021.

Revenue for H1 of £402.2 million was 21% higher than a year prior. Meanwhile, adjusted operating profit of £12.6 million was 142% ahead of the year before. Free cash flow was a healthy £19.3 million.

Encouragingly, the interim dividend was reinstated. This suggests that management is confident about this future. The company also maintained its outlook for the full year.

“The Board anticipates further good progress in 2022, in line with previous expectations, with performance in the second half of the year expected to be similar to the first half. Along with the strong cash performance and healthy balance sheet, this gives the Board confidence to announce the reinstatement of a dividend for 2022,” said David Squires, Group Chief Executive Officer.

Having read through the first-half results, we see the recent insider buying at Senior as a positive development.

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