2iQ Insider Brief: Beneteau SA (BEN FP) Zimmer Biomet Holdings(ZBH US) WisdomTree Investments (WETF US)

Kaloyan Kolev 14 February 2019

Beneteau SA (BEN: FP) 

12-month performance: -47%
Insider activity: Bullish
Buying pattern: Large purchases from CEO
Recent news: Disappointing trading update

 

Beneteau is a French company that is engaged in the construction and sale of recreational boats and mobile leisure homes. Its boating division – which operates through a number of brands – specialises in the design, production and marketing of recreational boats and luxury yachts, while its housing segment focuses on the design, manufacture and marketing of leisure homes, lodges and pods that combine eco-design with high standards of quality, comfort and practicality. The stock is listed on the Euronext - Paris and currently has a market capitalisation of €820 million.

 

After a strong performance in 2017, shares in Beneteau underperformed in 2018, and they have continued to underperform this year. Disappointing Q3 results in July, and a subsequent cut to revenue growth guidance were the main drivers of the share price decline last year, while another disappointing trading update earlier this month, in which the group advised that full-year revenue growth is only expected to be 3%-5% saw the stock fall another 20% recently.

 Beneteau

Source: 2iQ Research

Looking at insider transaction activity here, we think the stock looks quite interesting at present. This is due to the fact that CEO Herve Gastinel has made several large purchases this month, which suggests the key insider sees upside from current levels. What’s particularly interesting about this specific case of insider transaction activity is that Gastinel has a 2iQ short-term trading IQ of 113, which indicates that he has a good track record of timing his transactions well. Indeed, an analysis of his past transactions reveals that he sold a significant amount of stock in December 2017 and January 2018 while Beneteau’s share price was above €20, locking in a healthy profit. So, we think the fact that Gastinel is now buying shares again (he’s acquired 50,000 shares this month at a share price of €10.20) is worth noting. In our view, Beneteau has rebound potential.

Zimmer Biomet Holdings (ZBH: US) 

12-month performance: +5%
Insider activity: Bullish
Buying pattern: Purchases from multiple directors including CEO and Chairman
Recent news: Q4 earnings beat estimates

 

Zimmer Biomet is a global leader in musculoskeletal healthcare. The company designs, manufactures, and markets a broad range of healthcare products including orthopaedic reconstructive products, trauma products, and spine, craniomaxillofacial and thoracic products. Operating in more than 25 countries, its products are sold in over 100 countries across the world. The stock is listed on the New York Stock Exchange and currently has a market capitalisation of $24.9 billion.

 

Shares in Zimmer Biomet have had a good run in 2019 so far, rising from around $104 to $124. The stock has been boosted by a number of broker upgrades since the beginning of the year, while recent Q4 results, released on 1 February, also boosted sentiment towards the stock, as sales and profits topped Wall Street estimates for the fifth straight quarter.

 Zimmer Biomet

Source: 2iQ Research

Analysing recent insider transaction activity at Zimmer Biomet, we think the current upward trend could have further to run. This is due to the fact that eight separate directors have acquired substantial amounts of stock in February, which we see as an extremely bullish development. Those buying have included key insiders such as President/CEO Bryan Hanson and Chairman Larry Glasscock – directors that are likely to have an excellent understanding of the group’s future prospects. With the company recently stating that it plans to launch a number of “exciting new products” in the near term, we believe the outlook for the shares is favourable.

WisdomTree Investments (WETF: US) 

12-month performance: -39%
Insider activity: Bullish
Buying pattern: Purchases from multiple directors including CEO and CFO
Recent news: Poor Q4 results

 

WisdomTree Investments is an investment management group that focuses on exchange-traded products (ETPs). The company offers a broad range of ETPs including dividend, small cap, commodity, hedged and leveraged strategies. The stock is listed on the NASDAQ Global Select Market and currently has a market capitalisation of $964 million. 

 

WisdomTree shares have performed poorly over the last year, losing almost 40% of their value. The stock has come under pressure for a number of reasons, including declining assets under management, rising costs and investments in the business, underwhelming inflows, and a number of broker downgrades. Recent Q4 results, released on 1 February, did little to improve sentiment, as the company generated a loss of $12 million for the period, due to several significant non-operating charges.

 WisdomTree

Source: 2iQ Research

While WisdomTree shares are clearly out of favour right now, we think the stock could be worth a closer look. This is due to the fact that on 4 February, four top-level directors purchased shares in the company, which suggests these insiders see upside potential in the stock. Those buying included President/CEO Jonathan Steinberg, who spent over $500,000 on shares, as well as CFO Amit Muni, who spent $81,000 on stock. With the company recently stating that it is poised for its “next wave of growth,” after its 2018 acquisition of ETF Securities, we believe the stock is worth watching closely going forward.   

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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