The founder of Saputo has just bought $30 million worth of shares in the Montreal dairy processor.
Emanuele “Lino” Saputo purchased 1 million shares of Saputo in the last few days.
On Monday, he bought a block of 530,000 shares. He also bought 270,000 shares on June 23 and 200,000 shares on June 22.
All of these purchases were made for the benefit of the Mirella and Lino Saputo Foundation.
These transactions bring the number of Saputo shares held by the foundation to 3.8 million. This foundation, created 44 years ago, is committed to community organizations working for people with disabilities, the elderly and people with an immigrant background.
Asked to comment on this investment, Saputo management simply indicated by email that they were happy to be able to count on the “continuing support of the founder of the company through an organization that is so close to his heart”.
This is the second time in two years that Lino Saputo has made a significant investment in Saputo shares for the foundation that bears his name and that of his wife. In June two years ago, he bought 1.2 million shares in three days. It was then a transaction valued at $43 million.
Saputo’s stock is under pressure on the markets. The stock is back near its 52-week low on the Toronto Stock Exchange. The stock, which was worth nearly $50 four years ago, closed Wednesday’s session at $28.95.
The stock notably lost 11% of its value on June 9, the day after the unveiling of the year-end financial performance. Investors seem to be showing some caution in the current macroeconomic environment, which remains difficult.
For the coming months, Saputo management expects inflation affecting all input costs to moderate, but remain high.
Executives anticipate that competition and the slowdown in demand in the United States should have a negative impact on volumes and operational efficiency in particular at Saputo south of the border.
Internationally, Saputo expects to feel the negative impact of lower prices for cheese and dairy ingredients.
The research firm Veritas has also launched in the last few days an official coverage of Saputo’s activities by recommending the sale of the title. Kathleen Wong thus became the tenth analyst to officially follow Saputo. Six out of ten analysts suggest buying.