Genus plc (GNS, 680p) ‘creates advances to animal breeding through biotechnology and sells added value products for livestock farming and food producers. Its non-genetically modified organism technology is applicable across all livestock species but is only commercialised by Genus in the bovine and porcine farming sectors’.

Genus has been the subject of ‘bid talk’ with rumours of a bid as high as 1300p per share (Scotsman article).

So what do the directors of Genus think? The answer is that five out of the six directors have bought shares since February, at prices in a surprisingly narrow range of between 680p and 720p:

CEO Wood has bought 20,000 shares at 700p taking his holding to 20,200 shares (and 342,000 shares of conditional share awards as part of the Company Performance Share Plan).

Chairman Hawkins has bought 4100 shares at 716p initiating a position.

Non exec Worby bought 10,000 shares at 720p initiating a position.

Non exec Turner has bought 15,000 shares at 716p initiating a position, and lastly

Non exec Professor Furr bought 3000 shares yesterday at 680p initiating a position.

These transactions qualify for a STRONG signal:

  1. Five out of six directors buying shares
  2. Average investment above GBP 70k
  3. Significant increase in holding (four out of the five purchases are to initiate holdings)
  4. The words ‘bid rumour’ have arisen in the last six months.

The words smoke and fire come to mind.

View on Genus plc: Positive- directors buying

Signal Strength: STRONG