Insider Trades: 6 ASX 200 directors bought and sold shares after FY24 results
Cochlear and Beach Energy insiders buy amid share price dips, while Seek's CEO sells into a weak result.
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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
Code | Company | Date | Director | Type | Price | Value |
|---|---|---|---|---|---|---|
Cochlear | 22/08/24 | Buy | $305.57 | $76,392 | ||
Beach Energy | 20/08/24 | Buy | $1.31 | $52,396 | ||
Sims | 22/08/24 | Buy | $10.95 | $40,520 | ||
Cochlear | 20/08/24 | Buy | $312.04 | $14,978 | ||
Cochlear | 21/08/24 | Buy | $303.96 | $14,894 |
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
Code | Company | Date | Director | Type | Price | Value |
|---|---|---|---|---|---|---|
Seek | 21/08/24 | Sell | $21.41 | $321,196 | ||
Amotiv | 20/08/24 | Sell | $10.74 | $86,648 |
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.
