The Insider: City deals uncovered

Savvy Avingtrans chairman buys stake

Roger McDowell, chairman at Avingtrans, was quick off the mark following the component supplier's recent half-year numbers. He's just bought 30,000 shares at 104.5p each, taking his stake to 2.4 million, or 8.7% of the business.

McDowell's purchase came hours after the company had published results that David Buxton, an analyst at broker finnCap, called "satisfactory." Demand from the aerospace sector was weaker, but has now stabilised, while the energy and medical businesses have been impacted by project delays.

In the job for seven years, McDowell has proved adept at calling the market in Avingtrans' shares. Last year was tough for the firm, which supplies parts used on Airbus jets, self-locking nuts to Rolls-Royce, and parts for Siemen MRI scanners. But in a well-timed trade, the serial non-executive director sold 125,000 shares in June at 158p.

"The shares have gradually drifted over the last few months following the revision of forecasts, and now trade at a P/E of 12.0x dropping to 9.7x in 2016E," says Buxton. "We now therefore see good value emerging based on our 2016 forecasts. We increase our price target from 130p to 135p." That would put the shares on a forward P/E of 14.

Wilmington boss is bullish

Hours after Wilmington issued results for the six months to December chief executive Pedro Ros was on the phone to his broker with a buy order for £50,000 of stock. In the end, Ros, who took over at the provider of information, compliance and education to professionals five months ago, bought 22,425 shares at an average price of 222p.

Clearly, Ros is bullish after Wilmington unveiled forecast-beating numbers on Wednesday. Revenue up 7% to £46.1 million and adjusted pre-tax profit up 14% to £8.1 million both breezed past estimates at Numis Securities.

"Trading has been in line with the board's expectations and, as our clients' businesses are exposed to increasingly complex legislation and ever-tighter regulatory control, we remain confident that global demand for Wilmington's products and services will grow correspondingly," says Ros.

And Numis is equally positive. "Numbers firmly underpinned in 2015, with risk on the upside as we move through H2. Wilmington shares remain very good value at current levels, we reiterate our Buy and 315p target," writes the broker.

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.