2iQ Insider Brief: Eastnine AB (EAST: SS)Speedy Hire PLC (SDY: LN)FirstGroup PLC (FGP: LN)

Kaloyan Kolev 19 November 2019

Eastnine AB (EAST: SS)

 12-month performance: +43%
Insider activity: Bullish
Buying pattern: Purchases from CEO and CFO
Recent news: Strong Q3 results

 

 Eastnine is a Swedish real estate company that focuses on commercial real estate in the Baltics. Its business consists of three main investment segments: directly-owned property, real estate funds, and other holdings. The stock is listed on the OMX Nordic Exchange Stockholm and currently has a market capitalisation of SEK 2.9 billion.

Eastnine shares have outperformed recently on the back of the company’s strong third-quarter results. Issued on 8 November, the Q3 results showed that for the first nine months of the year, Eastnine’s rental income increased 39% to €9.2 million, while operating profit for the nine-month period rose 47% to €8.2 million. Profit from property management also increased 81% to €3.8 million.

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Looking at insider transaction activity, we think it’s interesting that CEO Kestutis Sasnuaskas and Deputy CEO/CFO Britt-Marie Nyman purchased Eastnine shares shortly after the company’s Q3 results. According to our records, Nyman acquired 4,500 shares on 8 November, while Sasnuaskas purchased 9,100 shares on 11 November. These purchases suggest that these insiders are confident about the future and expect Eastnine shares to continue rising. Given this bullish insider activity, we think the stock has the potential to climb higher.

 

Speedy Hire PLC (SDY: LN)

 12-month performance: +3%
Insider activity: Bullish
Buying pattern: Purchases from two directors including Chairman
Recent news: Good H1 results

 

 

Speedy Hire is a UK-based tools and equipment hire services company. The group operates in the construction, infrastructure, industrial, utilities, events, and facilities management markets, and has over 200 locations across the UK. The stock is listed on the London Stock Exchange and currently has a market capitalisation of £310 million.

 

Speedy Hire shares have risen in the last week after the group issued a good set of half-year results on 13 November. For the six-month period to 30 September, revenue increased 6% and adjusted profit before tax rose 20% – an excellent result given the high level of economic uncertainty in the UK due to Brexit. The company also hiked its half-year dividend by 17% which suggests that management is confident about the future.

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What we think is interesting here is that shortly after Speedy Hire issued its half-year results, Chairman David Shearer purchased 100,000 shares in the company at a price of £0.55 per share, boosting his holding by nearly 30%. In our view, this is a bullish signal as it suggests that the insider expects the shares to continue rising. It’s also worth noting that another insider, Non-Executive Director Rhian Bartlett, also bought 74,744 shares in the company after the results. Given this bullish insider activity, we think the stock offers a favourable risk/reward proposition right now.

 

FirstGroup PLC (FGP: LN)

 12-month performance: +43%
Insider activity: Bullish
Buying pattern: Purchases from CEO, CFO, and Chairman
Recent news: Disappointing half-year results

 

 

FirstGroup is a leading provider of transport services in the UK and North America. The group is the largest provider of home-to-school student transportation in the US and is also one of the largest bus companies in the UK. The stock is listed on the London Stock Exchange and currently has a market capitalisation of £1.4 billion.

 

FirstGroup shares fell sharply last week after the company issued a disappointing set of half-year results. For the six months to 30 September, the group reported a statutory pre-tax loss of £187 million, compared with a loss of £4.6 million a year earlier. This increased loss was mainly due to a non-cash impairment charge of £124 million related to its Greyhound business. On the positive side, however, group revenue for the period increased 7%, and the company said that it is focused on rationalising its portfolio to realise value for shareholders.

FGP_LN

Examining insider transaction activity, we think FirstGroup shares are worth a closer look right now. We say this because on 15 November we observed purchases from the company’s CEO, CFO, and Chairman, who between them, spent over £225,000 on stock. We see this buying activity as a bullish signal as it suggests that these company insiders expect the shares to recover. With the group looking to sell off assets in order to add value for shareholders, and three top-level directors buying shares, we believe FirstGroup looks quite interesting right now. 

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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