2iQ Insider Brief: Fingerprint Cards AB (FINGB: SS) Pluralsight Inc (PS: US) Alimentation Couche Tard (ATD/B: CN)

Desislav Delchev 27 September 2019

Fingerprint Cards AB (FINGB: SS)

12-month performance: +88%
Insider activity: Bullish
Buying pattern: Purchases from multiple directors including CEO, CFO and Chairman
Recent news: Improved half-year results 

Fingerprint Cards is a Swedish technology company that develops, produces, and markets biometric technology. Its technology – which is able to verify a person’s identity through the analysis and matching of that individual’s unique fingerprint – can be found in hundreds of millions of devices and applications across the world. The stock is listed on the Stockholm Stock Exchange and currently has a market capitalisation of SEK 5.9 billion.

We last covered Fingerprint Cards in November 2018 when the stock was trading at around SEK 13. At the time, we noted that a number of directors were buying shares, and we said that, in our view, this was a bullish signal. Fast forward to today, and the stock is trading at SEK 19, which means it has risen approximately 46% since our last report. Half-year results, released in mid-August, showed that EBITDA for the period came to SEK 79.8 million, a significant improvement on the EBITDA loss of SEK 550.7 million the year before.


first                Source: 2iQ Research

Looking at recent insider transaction activity, we think the stock could be set to continue rising. We say this because this week nine directors at Fingerprint Cards have purchased stock, which suggests that these insiders are confident about the future. Those buying have included CEO Christian Fredrikson, CFO Per Sundqvist, and Chairman Johan Carlstrom, who between them have purchased over USD $1 million worth of stock. With multiple insiders going long just before the group’s upcoming silent period, we think the outlook for the stock is favourable.

Pluralsight Inc (PS: US)

12-month performance: -48%
Insider activity: Bullish
Buying pattern: Purchases from multiple directors including Founder
Recent news: Q3 forecasts missed expectations 

Pluralsight is a US-based enterprise software company that provides skill development technology solutions for businesses and individuals. Offering a cloud-based learning platform that uses machine-learning technologies, the group provides a range of courses that can be used to train staff and perform skill assessments. The stock is listed on the NASDAQ Global Select Market and currently has a market capitalisation of $2.4 billion.

Pluralsight shares fell sharply at the beginning of August when the group released its second-quarter results. While revenue for the period jumped 42% on the prior period, and non-GAAP earnings per share surged 71%, the market didn’t like the fact that Q2 billings were below the consensus forecast and guidance for Q3 was also below consensus estimates.

second               Source: 2iQ Research

Looking at insider transaction activity, we think it’s interesting that in the last six weeks five directors, including Co-Founder Fritz Onion and Lead Independent Director Gary Crittenden, have purchased shares in Pluralsight. Between them, these five insiders have purchased nearly $2 million worth of stock around the $17 mark. In our view, this is a bullish signal as it indicates that these insiders expect Pluralsight’s share price to rebound. With CEO Aaron Skonnard recently stating that the group has a “strong base for continued success” and multiple insiders buying shares, we think the stock has the potential to recover from its recent fall.

Alimentation Couche Tard (ATD/B: CN)

12-month performance: +26%
Insider activity: Bullish
Buying pattern: Purchases from multiple directors including CFO
Recent news: Multiple broker upgrades

Alimentation Couche Tard is a Canadian company that is engaged in the convenience store industry. Operating under a number of banners including Circle K, Couche-Tard, Mac's, Kangaroo Express, Statoil, Ingo, and Topaz, the group has 15,000 stores across Canada, the US, Europe, Mexico, Japan, China, and Indonesia. The stock is listed on the Toronto Stock Exchange and currently has a market capitalisation of CAD $46.3 billion.

Alimentation Couche Tard shares have had a good run over the last year, rising around 26%. One of the reasons the stock has risen is that the company has announced a number of deals with cannabis companies, while an announcement in April that the group would repurchase 17 million shares also helped sentiment towards the stock.

third-1               Source: 2iQ Research

Looking at insider transaction activity, we think the stock has the potential to keep rising. This is due to the fact that five directors have purchased shares in the last six weeks, including CFO Claude Tessier, who has acquired an additional 2,500 shares to boost his holding by nearly 50%. This buying activity suggests that these insiders see value in the stock at current levels. Interestingly, brokers also appear to be bullish on the stock, with three separate brokers upgrading their price targets for the stock this month. With that in mind, we think the stock could be set to move higher.

Disclaimer: Neither 2iQ Research GmbH nor its content providers are responsible for any damages or losses arising from any use of this information.

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