Insider Trades: 6 ASX 200 directors bought shares after last week's FY24 results
Directors from Nufarm, Car Group, Aurizon and more are buying shares post FY24 results.
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Mentioned
KEY POINTS
- Nufarm's FY24 EBITDA guidance downgrade led to a 10% stock drop, with industry challenges expected to improve in 2025
- Car Group reported in-line FY24 results and FY25 guidance, highlighting international expansion through key acquisitions
- Aurizon's shares fell 8.8% after reporting an FY24 miss and weak FY25 guidance, with analysts noting short-term challenges but long-term growth potential
The Insider Trades Series is back after a three week break due to the lack of director transactions during ASX reporting season.
This series is a weekly summary of on-market ASX 200 director transactions valued at more than $10,000. The trades have all taken place between 13 and 19 August 2024. Directors have up to 5 business days to notify the ASX of their trades.
Top ASX 200 Insiders Buys
Ticker | Company | Date | Director | Type | Price | Value |
|---|---|---|---|---|---|---|
Infratil | 13/08/24 | Buy | $10.61 | $757,416 | ||
Nufarm | 16/08/24 | Buy | $3.89 | $291,750 | ||
Car Group | 19/08/24 | Buy | $36.50 | $170,147 | ||
Computershare | 16/08/24 | Buy | $27.80 | $150,898 | ||
Neuren Pharmaceuticals | 16/08/24 | Buy | $15.73 | $100,766 | ||
Aurizon | 14/08/24 | Buy | $3.33 | $99,900 | ||
National Australia Bank | 19/08/24 | Buy | $36.96 | $73,920 | ||
Credit Corp Group | 12/08/24 | Buy | $16.06 | $48,170 | ||
Netwealth Group | 14/08/24 | Buy | $20.70 | $41,400 |
Nufarm experienced an almost 10% one-day selloff on 15 August after downgrading its FY24 EBITDA guidance by around 15% to $300-330 million (previously $350-390 million). Macquarie says the downgrade is "not wholly unexpected" given soft updates from global peers such as American agricultural chemical and seed companies Corteva and FMC as well as softening prices in China. The analysts expect demand and industry conditions to improve in 2025 but uncertainties remain around the timing of the recovery. They also flagged that Chinese supply could "keep the lid on pricing". The insider might be seeing some value from a long-term perspective, with Nufarm trading around five-year lows.
Car Group's FY24 reported in-line numbers across the board and its FY25 guidance was consistent with the market's growth expectations. While the detailed guidance revealed some mixed signals – notably, the forecast of flat margins fell short of expectations – the company reported a strong start in the first six weeks of FY25. A key highlight was the group's international expansion, particularly through the acquisitions of Trader Interactive and Webmotors, which significantly advanced its global transformation efforts. Car shares are up around 10% since the result (9-Aug) and opened at record highs on Thursday.
Aurizon shares tumbled 8.8% on 12-Aug after reporting a slight FY24 miss due to higher depreciation and interest costs, coupled with a weaker-than-expected FY25 earnings guidance. The stock was met with heavy selling on the reporting date, likely exacerbated by the below consensus dividend (and reduced payout ratio). The lower payout likely drove some forced selling from yield investors and income funds. Overall, analysts were cautious on the outlook for Aurizon, noting that while short-term challenges exist, they acknowledged long-term growth opportunities in bulk and network. The insider narrative might be similar to Nufarm – a challenged short-term vs. long-term growth.
The Lone Sell
Ticke | Company | Date | Director | Type | Price | Value |
|---|---|---|---|---|---|---|
Netwealth Group | 15/08/24 | Sell | $21.79 | $499,967 |
Netwealth's FY24 results were slightly below market expectations – which never bodes well for a stock that's rallied around 50% year-to-date and trading on the more expensive side (vs. historical multiples). . The net profit miss was primarily attributed to lower-than-anticipated revenue and a more significant margin decline than expected. However, the company's strong pipeline and robust start to the new financial year, particularly evidenced by substantial net inflows in July, offered some reassurance to the market. While analysts maintained optimism about the continuation of this positive trend, some voiced concerns regarding the sustainability of these flow levels beyond the upcoming financial year.
