12-month performance: +58% Insider activity: Bullish Buying pattern: Buying from multiple directors including CEO, CFO and Chairman Recent news: Strong Q4 results and large dividend increase
Lindab International is a Swedish company that develops, manufactures and distributes construction and ventilation products and solutions. The group operates in the Nordic region, Western Europe, and the CEE/CIS, and generates around 80% of its sales from the non-residential property sector. The company is listed on the Stockholm Stock Exchange and currently has a market capitalisation of SEK 9.4 billion.
Lindab issued a strong set of fourth-quarter results on 6 February. For the quarter, sales increased 6% to SEK 2.53 billion, while adjusted operating profit increased 23% to SEK 212 million and earnings per share surged 36% to SEK 1.88. Additionally, cash flow from operations increased 54% to SEK 366 million, and the Board of Directors proposed a dividend of SEK 3.60 – up 106% on last year. Management said: “We can hereby conclude a very successful year for Lindab and we see many good opportunities on the road ahead.”
Source: 2iQ Research
Looking at insider transaction activity, we think the outlook for Lindab shares is favourable at present. We say this because since the group’s Q4 results, we have observed purchases from CEO and President Ola Ringdahl, CFO Malin Samuelsson, and Chairman Peter Nilsson, as well as a large purchase from 5% owner Handelsbanken. This buying pattern is a bullish signal, in our view. With the company recently increasing its dividend by over 100%, and multiple insiders buying shares, we think the stock has the potential to move higher.
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