Insider Trades: 6 ASX 200 directors bought and sold shares after FY24 results

Welcome back to the Insider Trades Series – A weekly summary of on-market ASX 200 director transactions valued at more than $10,000. The trades have all taken place between 20 and 21 June 2024. Directors have up to 5 business days to notify the ASX of their trades.

Top ASX 200 Insider Buys

Cochlear insiders are buying the dip: Cochlear shares have plummeted to their lowest level since February 2023 following disappointing FY24 results and FY25 guidance. The stock dropped 7.3% on the reporting day and continued to decline, falling another 4% over the next five sessions. Key results include:

• Revenue up 15% to $2.25bn or 1.7% below Macquarie estimates (as at 26-Jul)

• Statutory net profit up 19% to $357m

• Underlying net profit up 27% to $387m or 4.2% below estimates

• Full-year dividend up 24% to $4.10 per share or 4.6% below estimates

• FY25 underlying net profit guidance range is $410-430m, a 6-11% increase on FY24 but 8.9% below estimates (at the midpoint)

While insiders are buying into this weakness, Macquarie analysts remain cautious. In an August 15 note, they said "while acknowledging Cochlear's market position and a large addressable market, we see barriers to increased uptake (audiologist referrals, patient awareness). Further, with limited expectations for operating leverage, we see current valuations as elevated based on expected growth."

A Beach Energy Non-Executive is also buying into weakness: Beach Energy's FY24 results (12-Aug) was met with disappointment by the market, largely due to a significant reserve downgrade, which overshadowed what was otherwise a solid financial performance. While its FY24 underlying EBITDA and NPAT was largely in-line with market expectations, this was offset by the unexpected 27% reduction in Otway basin reserves.

Top ASX 200 Insider Sells

Seek's CEO is selling into strength: Seek reported a challenged FY24 result and an FY25 guidance that was far from pleasant. Some of the key numbers include (vs. Macquarie estimates as of 26-Jul):

• Revenue down 6% to $1.08bn, in-line with Macquarie expectations

• EBITDA down 14% to $468.9m or 1.2% below ests

• Adjusted net profit after tax down 33% to $177.4m or 2% below ests

• Reported net loss of $59.9m (vs. $230.3m profit a year ago)

• FY25 adjusted NPAT between $130m and $180m or 12-27% below consensus

Despite initially falling 6.6% on the result day (August 13), Seek shares have since rebounded, trading 6.1% higher post-report. This price action is intriguing given Seek's current valuation of around 47x FY25 earnings. It's an eye-watering valuation for a company's that guided to negative growth and near-term headwinds.

It's worth noting that CEO Ian Narev consistently sells some shares after August and February reporting seasons, regardless of company performance.