Insider trading can serve as a powerful indicator of a company’s future potential. With top executives and board members putting their own money on the line, it’s a clear vote of confidence in the company’s future growth. When insiders open their wallets, it’s often a bullish sign, and for Logitech International S.A. (LOGI), some of its recent insider purchases are raising eyebrows, signaling heightened optimism within the company’s leadership ranks.
LOGI stock took a hit following its recent earnings announcement, but the dip apparently opened up a compelling entry point for well-placed insiders. Specifically, Logitech’s director and former interim CEO, Guy Gecht, acquired 2,500 shares of the tech giant on Oct. 24, investing approximately $202,799 at a price of $81.12 per share. Notably, Gecht, who served as interim CEO from June to December 2023, made this transaction at nearly the same entry point as a recent insider purchase made by Logitech’s former CFO, Charles Boynton.
Earlier this year, Boynton, through the Boynton Living Trust, invested close to $100,000 in May at a comparable price of $81.27 per share. This buy-in from two high-ranking insiders not only reflects shared optimism, but serves as a bullish sign of their confidence in Logitech's long-term trajectory - and suggests the stock might be an appealing pick-up for the rest of us at current prices, too.
For investors seeking potential value plays in the hot tech sector, here’s a closer look at this name that’s catching a boost from insider optimism.
About Logitech International Stock
Switzerland-based Logitech International S.A. (LOGI) is a pioneer in creating software-enabled hardware solutions that empower businesses and connect people through work, play, and gaming. Founded in 1981, Logitech designs and markets a diverse range of innovative products, from PC peripherals like trackballs and gaming controllers to internet communications tools such as webcams and headsets. With a strong dedication to connecting people and technology, Logitech is at the forefront of revolutionizing the digital landscape.
Currently valued at approximately $12.7 billion, the tech company’s shares have retraced about 18% from their June peak of $102.59. While LOGI stock has gained about 5.7% over the past year, it has experienced a decline of nearly 12% on a YTD basis.
Logitech's dedication to its shareholders is evident in its impressive 11-year streak of consecutive dividend increases. On Sept. 25, Logitech paid its shareholders an annual dividend of $1.37 per share, resulting in a yield of 1.64%.
Dividends aren’t the only way Logitech returns value to its shareholders. The company returned a substantial $340 million in total during Q2 through dividend payments and share repurchases, reinforcing its position as a shareholder-friendly investment.
Plus, from a valuation perspective, LOGI is trading at 18.38 times forward earnings, which is a discount to both the sector median and its own five-year average, respectively. This suggests that now is a good time to scoop up LOGI shares at a discount.
Logitech Slides After Q2 Earnings
Following the release of Logitech’s fiscal 2025 Q2 earnings results on Oct. 21, which arrived in line with analysts’ top-line expectations and soared beyond bottom-line forecasts, shares of the company took a hit, plummeting almost 8.5% in the subsequent trading session as investors reacted to light guidance.
Net sales jumped 5.6% year over year to $1.1 billion in Q2, driven by a surge in demand across various regions and product categories, while adjusted EPS of $1.20 improved by nearly 10.1% from the year-ago quarter, and smashed consensus estimates by 12%.
During the quarter, Logitech’s non-GAAP gross margin expanded to 44.1% from the prior-year quarter’s 42%, highlighting the company’s operational efficiency and ability to manage costs effectively. Logitech reported robust cash flow from operations of $166 million for the quarter, reinforcing its financial health. With a quarter-ending cash balance of around $1.4 billion, the company is well-positioned to invest in future growth initiatives while maintaining a strong liquidity cushion.
Reflecting on the Q2 performance, CFO Matteo Anversa said, “We delivered year-over-year expansion of non-GAAP gross margin thanks to the continued strength of our operations. Our strong results and overall business momentum give us the confidence to raise our annual outlook.”
For fiscal 2025, management boosted Logitech's sales outlook to a range between $4.39 billion and $4.47 billion, up from the prior estimate of $4.34 billion to $4.43 billion. Yet, the new guidance still lagged behind analysts' expectations of $4.51 billion, which disappointed investors. This slight miss overshadowed an otherwise strong quarterly performance, leading to the post-earnings sell-off in LOGI - and a buying opportunity for insiders.
What Do Analysts Expect For Logitech International Stock?
Overall, Wall Street is still cautious about LOGI stock, with a consensus “Hold” rating. Of the 11 analysts offering recommendations, four advise a “Strong Buy,” four suggest a “Hold,” and the remaining three recommend a “Strong Sell.”
The mean price target for LOGI is $95.25, indicating an upside potential of around 13.7% from current levels, while the Street-high target price of $114 implies that the stock could rally as much as 36.2% from here.
On the date of publication, Anushka Mukherji did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
