Savaria shares rally as CEO transition unfolds January 22, 2024

Savaria shares rally as CEO transition unfolds January 22, 2024

----------------------------------------------------

The shares of global mobility equipment maker Savaria (SIS) continued to head higher following our November 6th report, advancing 8.5%. There have been no further financial results released since that report, but Savaria has announced some key leadership changes. On November 30th, it announced that Sebastien Bourassa would become President and Chief Executive Officer on January 1st, while Marcel Bourassa would become Executive Chairman of the Board. According to La Presse, Sebastien is one of Marcel's three adult children working at the firm. According to the company, Sebastien has been involved with expanding the company's operations in China and Mexico. The stock went on to set a 3-month high of $15.49 on December 14th, but it has since pulled back a bit and remains below its 200-day moving average

Later, on December 19th, Savaria appointed former McKinsey partner Jean-Philippe De Montigny as Chief Transformation Officer. His key focus will be Savaria One which is a company-wide effort to maximize the integration and synergies of the Accessibility and Patient Care business segments across all markets. Mr. De Montigny subsequently bought shares in the public market last week while Sebastien and another Bourassa bought shortly after our previous report. The buying is helping to keep the stock elevated in the INK Edge rankings.

-------------------------------------------------

From January 17th to January 18th, Savaria (SIS) Chief Transformation Officer Jean-Philippe De Montigny bought a total of 20,980 common shares on a direct ownership basis at an average price of $14.91. 

Earlier, on November 9th, President, Director, & CEO Sebastien Bourassa bought 15,000 common shares at $13.81. Sebastien Bourassa is the second-largest insider equity holder at the company with 0.48% of shares outstanding. 

Finally, on November 7th, Vice President of Sales Alexandre Bourassa bought 15,000 common shares at $13.89. 

Savaria has above median ownership (direct & indirect holdings) by Officers and Directors compared to other mid-cap stocks in the Industrials sector according to SEDI filings as of January 21st, 2024. 

Savaria currently holds a mostly sunny INK Edge outlook on the equally weighted V.I.P. criteria of valuations, insider commitment, and price momentum which places it in the top 30% of all stocks ranked. INK outlook categories are designed to identify groups of stocks that have the potential to out or underperform the market. However, any individual stock could surprise on the up or downside. As such, outlook categories are not meant to be stock-specific recommendations. For background on our INK Edge outlook, please visit our FAQ #3 at inkresearch.com.

-----------------------------------------

Source

INK Research