Cluster Buying: Multiple Insiders at 888 Holdings Just Bought Stock

One of the most bullish insider transaction patterns is cluster buying. This is where three or more insiders at the same organization have purchased company stock within a short period of time. 

In this report, we are going to highlight a recent cluster buying pattern at 888 Holdings (888:LN). 888 is a gaming company that is headquartered in Gibraltar. The company, which owns a number of gambling brands and websites, is active in the areas of online casino, sports betting, poker, and bingo. It’s listed on the London Stock Exchange and currently has a market capitalization of £359.98 million. 

Insider Buying at 888 Holdings 

Our data shows that between April 14 and April 18, three insiders at 888 Holdings purchased stock. 

Those who bought shares were:

• Executive Chairman Lord John Mendelsohn (100,000 shares @ £0.68 per share)

• CFO Yariv Dafna (20,000 shares @ £0.78 per share)

• Board member Ori Shaked (260,000 shares @ £0.78 per share) 

Combined, the insiders invested around £286,000 in the company. 

Gaming Experience 

We think it’s interesting that both Lord Mendelsohn and Mr. Shaked have bought stock as both of these insiders have considerable experience in the gaming industry. 

Lord Mendelsohn has more than 20 years of industry experience and previously co-founded Oakvale Capital LLP – an M&A and strategic advisory boutique focused on the gaming, gambling, and sports sectors. 

Mr. Shaked is a gaming entrepreneur and investor, as well as an experienced game producer. He was previously employed by 888 Holdings until 2017 as a game producer, online marketer, and business development manager.  

It’s also interesting that the CFO, Yariv Dafna, has purchased company stock. Mr. Dafna is set to leave his post at the end of 2023. Normally, when insiders are set to leave a company, they are net sellers of stock. 

Turnaround Play 

888 Holdings has had its fair share of issues in recent years. Not only has the company come under pressure for failing to follow KYC processes in the Middle East but it has also been hit with large fines from UK regulators for failing to protect consumers. These Developments pushed the stock down significantly. 

However, the gaming company now appears to be turning things around. Earlier this month, the company forecast higher adjusted core profit for 2023. Meanwhile, it said that it is cutting costs and that going forward, it will be focusing more on core and growth markets. 

“In 2023 we remain on track to deliver higher profitability as we deliver against our clear strategic priorities. Our clear priorities of integration, market focus, and deleveraging give us confidence in our 2025 targets, as we build a stronger and more sustainable business for the future," commented Lord Mendelsohn. 

Clearly, the market liked this news as the stock jumped 45% in a month. 

In light of the turnaround story here, we see the insider buying as a bullish development.