12-month performance: -7% Insider activity: Bullish Buying pattern: Purchases from multiple directors including CEO and Chairman Recent news: Solid half-year results
3i Group is a London-headquartered investment company. The company operates across two key divisions, Private Equity and Infrastructure, and has a particular focus on investment markets in North America and Europe. Listed on the London Stock Exchange, 3i Group is a constituent of the FTSE 100 index and currently has a market capitalisation of £8.2 billion.
3i Group recently released its half-year report on 15 November, and the numbers looked good. For the six months to 30 September, the company achieved a return of 10% on opening shareholders’ funds, and the Net Asset Value (NAV) per share rose to 776p at the end of the period, compared to 724p at 31 March. The stock has risen around 8% since these half-year results, yet it remains approximately 10% below the level it was trading at in late September due to general market weakness. As such, could now be a good time to go long?
Source: 2iQ Research
Analysing recent insider transaction at 3i Group, the outlook for the shares looks favourable, in our view. Since the recent half-year results, we have observed buying activity from five separate directors, including CEO Simon Borrows, who purchased 250,000 shares, and Chairman Simon Thompson, who acquired 12,378 shares, and we interpret this buying activity as a bullish signal. It’s also worth noting that CEO Borrows has a good track record of timing his purchases well. Given that multiple directors are purchasing shares in 3i Group, we think the shares could have the potential to generate further gains.
Kinaxis Inc (KXS: CN)
12-month performance: -9% Insider activity: Bullish Buying pattern: Purchases from multiple directors including CEO, CFO and Chairman Recent news: Reduced full-year revenue guidance
Kinaxis is a supply chain management company based in Ottawa, Canada. The company specialises in cloud-based supply chain planning solutions, and its clients include companies such as Ford, Nissan and Nikon. The stock is listed on the Toronto Stock Exchange and currently has a market capitalisation of CAD $1.8 billion.
Kinaxis shares have performed well since the stock’s IPO in 2014. The stock listed at an IPO price of CAD $13 per share in June 2014, but since then, it has climbed significantly higher and briefly touched CAD $100 in August this year. However, the shares have experienced a sharp pullback this month, after the group lowered its full-year revenue guidance marginally in its Q3 results on 8 November. Could this pullback have presented a buying opportunity?
Source: 2iQ Research
Analysing recent insider transaction activity at Kinaxis, we think the stock looks attractive after the recent pullback. In the last two weeks, we have observed significant buying activity from four top-level directors, including CEO John Sicard (5,000 shares), CFO George Monkman (3,155 shares), and Chairman John Giffen (3,000 shares) and we interpret this as a bullish signal. With the stock down over 30% since mid-August, we believe it could have the potential for a rebound.
Computer Modelling Group (CMG: CN)
12-month performance: -33% Insider activity: Bullish Buying pattern: Purchases from multiple directors including CEO, CFO and COO Recent news: Broker downgrades
Computer Modelling Group is a Canadian software company that serves the oil and gas industry. The group specialises in reservoir simulation software and has a blue-chip customer base of international oil companies that are located in over 60 countries across the world. The stock is listed on the Toronto Stock Exchange and currently has a market capitalisation of CAD $527 million.
Shares in Computer Modelling Group have fallen more than 30% in the last three and a half months. The stock was dumped by investors after Q1 results in August missed expectations, and several broker downgrades and a declining oil price will not have helped sentiment towards the company. Yet with the stock currently at its lowest level since mid-2011, could now be the time to take a closer look?
Source: 2iQ Research
From an insider transaction perspective, we certainly think the stock looks interesting right now. Since the shares have fallen under CAD $7 recently, multiple directors have been acquiring stock which suggests that these directors see value at that price. Directors buying have included CEO Kenneth Dedeluk (23,000 shares), CFO Sandra Balic (1,500 shares) and COO Ryan Schneider (3,505 shares), and we view these key insider buys as a bullish signal. With six different directors acquiring shares in the last two weeks, we think the stock could have turnaround potential.
Disclaimer: Neither 2iQ Research GmbH nor its content providers are responsible for any damages or losses arising from any use of this information.
Getting the most of Insider Trading Data - Free Book