Insider Profile: WEX
Wex (WEX) with a rare insider buy on 6/1 from Director James Groch of 3,000 shares between $201.00 and $202.61, a more than $600,000 buy. WEX has traded flat in 2021 after dipping back to the 200-MA recently and basing. Shares are about 13% below new 52-week highs. The $9B company trades 19X earnings, 5.85X sales, and 16X cash. WEX is a provider of corporate payment solutions including Fleet Solutions, Travel and Health and Benefits. Their fleet solutions provide processing services for commercial and government fleets. WEX is projecting 15% growth in revenue in FY21 and FY22 and 37% growth in EPS. WEX is positioned well for growth as the economy recovers after some major customer wins and deals that have expanded their TAM like those for benefitexpress and HealthcareBank. They continue to have a solid pipeline across fleet while their investments in areas like eNett will benefit from normalization in travel volumes. Short interest is 3.9%. Hedge fund ownership fell 1.5%. Junto Capital and Impactive Capital two notable buyers. Analysts have an average target for shares of $232.5 with a Street High $270. Cowen upgrading to Outperform in April citing material upside to consensus fueled immediately by rising fuel prices as well as the prospect of additional Travel recover driven upside which could prove his Street high earnings estimates to be conservative. WEX options flow has been bullish with 800 November $220/$180 bull risk reversals bought on 5/7 and remaining in OI.