2iQ Insider Brief: Solocal Group (LOCAL: FP) Oxford BioMedica (OXB: LN) Prudential Financial (PRU: US)

Desislav Delchev 18 September 2019
Solocal Group (LOCAL: FP)
12-month performance: -25%
Insider activity: Bullish
Buying pattern: Buying from multiple directors including chairman and Vice Chairman
Recent news: Improved half-year results
Solocal Group is a French company that specialises in helping its clients with digital growth. Operating in France, Spain, Austria and the United Kingdom, its product offering enables companies to build and develop their brand image and digital relationships, find new customers, create customer loyalty, and enhance the customer experience. The stock is listed on the Euronext - Paris and currently has a market capitalisation of €440 million.

We last covered Solocal Group in early April when the stock was trading at €0.54. At the time, a number of top-level directors had recently purchased shares in the company, which, in our view, was a bullish signal. Interestingly, the shares rose significantly immediately after our April report, hitting a high of €0.98 in early May. By following insider money, investors could have generated a gain of 80% in just one month.

colosal                  Source: 2iQ Research

In recent months, Solocal’s share price has pulled back to the €0.75 level, and analysing insider transaction activity, we think it’s interesting that a number of directors have added to their holdings near that price. Those buying have included Vice Chairman David Amar, who purchased €2.2 million worth of stock on 12 September, and Chairman of the Audit Committee Jacques-Henri David, who added €365,000 worth of stock in early August. With recent results showing that the company’s turnaround strategy is working, and multiple insiders buying shares, we think the stock could be poised to deliver further gains. 

Oxford BioMedica (OXB: LN)
12-month performance: -43%
Insider activity: Bullish
Buying pattern: Buying from multiple directors including CFO and Deputy Chairman
Recent news: Disappointing half-year results

Oxford BioMedica is a UK-based gene and cell therapy company. Through its LentiVector® delivery platform, the group has created a valuable portfolio of gene and cell therapy product candidates in the areas of oncology, ophthalmology, and CNS disorders, and the group has partnerships with major pharmaceutical companies such as Novartis, Boehringer Ingelheim, and Sanofi. The stock is listed on the London Stock Exchange and currently has a market capitalisation of €414 million.

Oxford BioMedica shares have fallen since the group released its interim results on 4 September. While the results showed that the company has made progress in a number of areas recently, and that Novo Holdings had invested £53.5 million in the group over the period, the company’s financial performance for the six months ending 30 June was disappointing, with revenues falling 9% to £32.1 million, and operating EBITDA swinging from a profit of £11.9 million last year, to a loss of £1.4 million.

oxforrd                  Source: 2iQ Research

However, looking at insider transaction activity, we see a bullish setup. Not only have a number of top-tier directors purchased shares in Oxford BioMedica since the group’s interim results, including the CFO and the Deputy Chairman, but Vulpes Investment Management, the company’s largest shareholder, has been boosting its position in the stock. With management stating recently that the company’s expansion to meet the fast-growing demand in the cell and gene therapy arena is “progressing as planned” and that it expects further deals to be signed this year, and multiple insiders buying shares, we think Oxford BioMedica is worth a closer look right now.

Prudential Financial (PRU: US)
12-month performance: -12%
Insider activity: Bullish
Buying pattern: Buying from multiple directors including chairman & CEO, CFO and Vice Chairman
Recent news: Solid Q2 results

Prudential Financial is an American financial services company. Through its subsidiaries, the group offers a range of financial products and services, including life insurance, annuities, retirement-related services, mutual funds, and investment management. The stock is listed on the New York Stock Exchange and currently has a market capitalisation of $35 billion.

After a good first half of the year, Prudential Financial shares have fallen recently on the back of the group’s second-quarter results, which were released on 31 July. Although the company’s second quarter earnings of $3.14 were 4.3% higher than the same period last year, they didn’t measure up to Wall Street’s expectations of $3.23 per share. Interest rates movements were one of the main reasons that the group’s earnings missed the consensus forecast. However, the second quarter results weren’t all bad – assets under management increased 8% year-on-year and the group’s return on equity came in at 12.9%, within the target range of 12-14%.

third                  Source: 2iQ Research

Looking at insider transaction activity, we think Prudential Financial shares have the potential to rebound. We say this because this month we have observed large purchases from the company’s Chairman and CEO, its CFO, and its Vice Chairman, who together, have purchased around $1.1 million worth of stock. These three insiders are likely to have an excellent understanding of the company’s future prospects, so we interpret these purchases as a bullish signal. With Chairman and CEO Charles Lowrey stating that the group remains confident in its planned initiatives for growth, and multiple insiders buying shares, we believe the stock has the potential 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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