12-month performance: -18% Insider activity: Bullish Buying pattern: Purchases from two insiders including CEO Recent news: Solid full-year results
TalkTalk Telecom Group is a UK-based provider of telephone, broadband, and television services. The company operates Britain’s largest unbundled broadband network, covering 96% of the population, and currently has over four million customers. It is listed on the London Stock Exchange and currently has a market capitalisation of £1 billion.
TalkTalk issued a solid set of full-year results earlier this month. For the year ended 31 March, headline EBITDA increased 9.7% to £260 million, while statutory operating profit increased to £202 million from £47 million. Unlike many other UK companies, the company maintained its dividend. Looking ahead to FY2021, TalkTalk said that it remains in a “robust operational and financial position,” with levers to manage costs further, and that it expects to deliver stable headline EBITDA year on year.
Source: 2iQ Research
What looks interesting here is the fact that two insiders have bought shares since the company’s full-year results. On 16 June, CEO Tristia Harrison purchased 223,045 shares at a price of 89p per share, spending just under £200,000 on stock. Meanwhile, between 11 June and 16 June, Non-Executive Director Roger Taylor – who was previously TalkTalk’s Non-Executive Deputy Chair between January 2010 and July 2012 – purchased 1.5 million shares, spending a total of around £1.4 million on stock.
We see this insider buying activity as bullish. It suggests that these insiders are confident about the future and believe the stock is currently undervalued.
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