Why NIQ Global Intelligence Stock Crushed it With a Double-Digit Gain on Monday
Key Points
This was made by no less a personage than its CEO Jim Peck.
The move comes several trading days after the company published its first-quarter results.
NIQ Global Intelligence (NYSE: NIQ) sure was a smart play for stock investors on Monday. The consumer behavior analysis company attracted attention because of a considerable insider stock buy; investors reacted to this by pushing the company's shares up by slightly over 10% that trading session.
That's one big buy-in
That buyer can be considered the ultimate Niq insider, as this person was no less than CEO Jim Peck. In a regulatory filing, the company disclosed that Peck bought 118,625 ordinary shares at a weighted-average price of $8.43 apiece. Added to his existing personal holding, Peck now owns 424,683; an entity he controls owns an additional, indirect holding of over 9.6 million shares.
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Neither the company nor its leader has publicly commented on the purchase. It comes several days after Niq published its first-quarter earnings report.
Despite decent top-line growth, investors were clearly unimpressed with Niq's performance and assertively traded out of the stock upon disseminating the quarterly figures. Its share price hasn't recovered from the swoon.
Bears beware
Any time a top insider buys a considerable chunk of shares in his or her own company, the effect can be dramatic. It's a sign that one of its most important executives has enough faith in its future to stake their own money on it. Whether this purchase is merely a gesture to boost investor morale or a more sincere move, I see it as positive, and it should prompt Niq bears to reconsider their stance.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.