The Insider Report - Week 47
Unveiling the top insider buys and sells in the stock market
Welcome to the next issue of The Insider Report, your weekly deep-dive into the most significant insider transactions within the corporate landscapes.
For now, the report will cover insider transactions in the German market, with plans to expand the coverage to additional markets.
Weekly Summary of Insider Buys & Sells in 🇩🇪 Germany
This trading week was again characterized by insider transactions, primarily reflecting activity in micro and small-cap stocks, including one large insider sell in one of the leading Enterprise resource planning (ERP) software companies.
A few of these businesses, along with a select set of transactions that really stand out, are highlighted below.
Top Insider Buys 📈
Dermapharm Holding SE (Ticker: DMP)
Founded in 1991, Dermapharm is a rapidly growing manufacturer of branded pharmaceuticals and healthcare products. The company boasts a fully integrated business model that covers the entire value chain from purchasing, through research and development, manufacturing, marketing and sales.
The company grows its portfolio through continuous strategic acquisitions, such as the acquisition of Apharma TopCo SAS, the French market leader in herbal medicines and food supplements, and Montavit in June this year, a company specializing in urology, gynecology, allergy therapy, and herbal pharmaceuticals.
The insider buy of around EUR 15 million worth of shares was made by Themis Beteiligungs AG, owned and managed by the founding Beier family, which still owns 67.7% of the company. Notably, quite a few foreign funds are invested in the company, albeit with small positions
ProSiebenSat.1 Media SE (Ticker: PSM)
ProSiebenSat.1 Media SE is a Germany-based European commercial TV giant, which operates through entertainment, dating and commerce & ventures segments. The company has recently experienced a series of share purchases by a few insiders, considered as a 'Cluster Buy', primarily by Andreas Wiele, the Chairman of the Supervisory Board.
Following a re-rating and an increase in the price target from EUR 6.0 to 7.5 per share by Morgan Stanley in late summer this year, the stock experienced a short-lived rally. However, the share price has been distinctly volatile over the past decades, marked by significant fluctuations and, more recently, under pressure due to rising inflation and negative consumer sentiment in Europe.
Currently trading at around EUR 5 per share, the company's stock is at its lowest point, similar to levels seen in 2009 and 2003.
Top Insider Sells 📉
In terms of selling, and in contrast to the buyings, some German large caps like Siemens AG and SAP SE have experienced insider sell-offs.
SAP SE (Ticker: SAP)
Founded in 1972 by five engineers, Germany's tech giant has, over the last half-century, become one of the most widely used business software in the world and evolved into a global leader in enterprise applications.
Like the few, small insider sales that occurred in the last months, the sell-off continued with Sabine Plattner, a member of the Supervisory Board and wife of Hasso Plattner, one of the founders. This week, she sold 139,606 shares, valued at around EUR 18.5 million, a transaction that represents a mere fraction compared to the company's current market cap of over EUR 100 billion.
Varta AG (Ticker: $VAR)
Varta, a German battery manufacturer, is known for its coin-shaped microbatteries for hearing aids. After a brief downturn during the pandemic crash in March 2020, Varta’s shares soared by approximately 180% to EUR 104 per share in just 12 months.
This rise was driven by investor perception that Varta is the 'only game in town' for batteries for Truly Wireless Stereo (TWS) earphones, a key component of Varta's 'Entertainment' division. However, as is commonly known, what rises quickly can also fall rapidly. Following its peak in 2021, Varta has become one of the most disliked stocks, or put differently, a favorite among short-sellers worldwide, having lost almost 90% of its market cap
Notably, Michael Tojner, Chairman of of the Supervisory Board, still owns around 47% of shares outstanding, making him the largest shareholder.
Conclusion
Even though insider buys and sells provide a glimpse into what people within the company think about the business and its future, I would never blindly follow an insider trade. However, as I mentioned in my first Insider Report last week, it serves more as an idea generator. This week, for instance, Dermapharm Holding SE made it onto my watchlist for further research.
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Disclaimer: This publication and its authors are not licensed investment professionals. The information provided in this publication is for educational purposes only and should not be construed as investment advice. We do not make any recommendations regarding the suitability of particular investments. Before making any investment decision, it is important to do your own research. RhinoInsight assume no liability for any investment decisions made based on the information provided in this newsletter.
Great breakdown of these companies. The poll did not allow me to vote, but I would be curious to learn about some Swiss companies.