$LVMUY - LVMH ?
This is interesting...
Information we have been collecting for several months indicates that Bernard Arnault, the 5th richest person in the world, who is also the CEO and owner of the giant luxury conglomerate LVMH, has been accumulating shares of his company for over 450 million cumulatively in the last 3 months!
His purchases come against the backdrop of the stock price, which has fallen by over 35% from its peak in March this year!
I see on financial websites that many analysts believe that, in their assessment, LVMH, the second largest company in Europe, which dominates 75% of the global luxury market, is, in their personal opinion, undervalued at its current price.
Could Bernard Arnault's recent purchases perhaps suggest that he thinks so too?
Some things that caught my attention at the company:
The massive purchases by CEO and owner Bernard Arnault, which I detailed at the beginning of the message!
Revenue and free cash flow grew at a compound annual growth rate (CAGR) of ~11% and ~14% respectively, from 2017 to the last 12 months.
Excellent and growing profit margins: 68% gross margin, 26% operating profit, and ~18% net profit margin. (Margins expanded from 2017 to the last 12 months)
Strong balance sheet with an AA credit rating.
Significant family ownership: the Arnault family holds 48% of the public shares!
A dividend yield of 2.25%.
Disclosure: holds the stock.