In this series we revisit previous 2iQ trading reports to track how a business’ stock price has performed. Last time we covered a Hugo Boss insider who experienced an impressive rise in stock value.
This week we’re taking a look back at Sanlorenzo SpA (SL:IM) who we reported on in January 2021.
Why Is It Worth Tracking the Stock Prices From Insider Trades?
Insider buying can provide potential investors with strong insight into a stock’s prospects, as their access to company information, in tandem with their industry experience, often results in profitable investment decisions. 2iQ Research publishes regular reports on insider activity.
Retroactively examining previous reports is a great method of evaluating the success of an insider’s trading activity.
Sanlorenzo Insider Trading Activity
Italian based yacht company Sanlorenzo experienced significant trading activity in December 2020 and we reported on this insider activity on January 7, 2021.
Sanlorenzo Chairman, Massimo Perotti purchased company stock on ten occasions throughout December. Across those purchases, Perotti acquired 40,745 shares, spending in total around €650,000.
In our original report, we highlighted two key reasons for examining Perotti’s trading activity. To start, Perotti has been the company's Chairman and majority shareholder since 2005. This indicates he's likely to know all there is to know about the company, such as its performance and prospects for the future.
More interestingly, Perotti's purchases prior to his December trading burst were well-timed. According to our data, the insider bought stock in March 2020 and May 2020. At the time of our last report, the stock price had risen by roughly 20% and 60% since his earlier 2020 investments.
We ascertained from this that the Chairman has a proven track record as an investor, having utilized his insider knowledge to previously profit from Sanlorenzo stock. How has Perotti’s December activity fared in the last ten months?
Sanlorenzo’s Strong Growth in 2021
Italian company Sanlorenzo SpA has experienced strong growth over the course of 2021. The company’s sales of new yachts have driven a strong rise in year-to-year revenue, up 66% in Q2 2021 from the previous year with a net income of €12.98 million, an increase of 181%.
This strong recovery after Covid-19 has also led to surge in its stock price. In December 2020 when Perotti made his investments, the price of the share was around €15, which has now increased to around €35 at the time of writing, which is an approximate 133% increase in value.
With this 133% increase in value, his trades would be worth €1,514,500, which nets a profit of €864,500.
The scope of Sanlorenzo Chairman’s profits is a great illustration of the company’s efforts to bounce back from the pandemic. Following his strong investments covered here, in August 2021 we reported further inside buying in July 2021. Perotti purchased a further 62,466 shares, spending around €1.5 million on the stock.
At the time of those purchases the company’s share price was valued at €25, meaning the share has increased by around 40% to €35 as of October 2021. This equals another €600,000 profit.
On both occasions, 2iQ assessed Perotti’s investments as bullish signals, and noted him as an insider worth tracking due to his impressive trading history.
Check out the 2iQ blog as we continue to revisit past reports.