Insider Trades: Directors are buying shares in these 5 ASX 200 companies

Welcome back to the Insider Trades Series – A summary of larger cap, on-market director transactions valued at more than $10,000

Top Director Trades (4-10 July)

Interesting Observations

Shares in the alternative real estate investment company Qualitas is down around 15% in both the past month and year-to-date. This coincides with a string of buys from Independent Chairman Andrew Fairley. 

The latest broker coverage for Qualitas dates back to 8 May, where Macquarie reiterated an OUTPERFORM rating with a $3.27 target price. 

“Qualitas continues to execute on material mandates which provide line of sight to FUM growth in the medium-term. Acceleration of deployment and achieving return hurdles to release future tranches will be key in the near-term,” the analysts said.

Qualitas 12-month price chart (Source: Market Index)

Genesis Minerals recently completed the acquisition of St Barbara’s Leonora assets for $625 million cash. The transaction enables the production of more than 300,000 ounces of gold per annum without sacrificing margins.

Genesis Minerals 12-month price chart (Source: Market Index)

Technology One rallied as much as 30% year-to-date – A run that was fuelled by better-than-expected earnings and sector tailwinds. It’s now pulled back around 10%. The stock historically does not see much insider activity. 

The latest broker note for Technology One comes from Goldman Sachs on 26 June. The investment bank retained a BUY rating with a  $18.30 target price, citing:

“Over the last two years TNE has demonstrated an improvement in the rate of underlying growth at the same time as it shifts legacy on-premise customers to cloud, creating a dual tailwind to ARR growth that has continued to surprise to the upside.”

Technology One 12-month price chart (Source: TradingView)

Bank of Queensland shares have spent most of this year spiralling lower. The stock is down almost 20% year-to-date and trading at levels not seen since September 2020. It does beg the question – At what price does this become a bargain?

The stock has seen two insider buys this year – Which mark the only insider buys since September 2022. Are they on to something?

From a broker perspective, Citi was NEUTRAL rated on the stock with a $5.75 target price in June.

“After a share price sell-off, investors are starting to consider BOQ’s buy case, seemingly attracted to the cheap valuation and its 7.4% dividend yield. However, we think the optimal entry point is yet to arrive,” the analysts warned.

“BOQ is more susceptible to a deteriorating asset quality cycle, more exposed to deposit competition, whilst in the midst of period of strong cost growth.”

Bank of Queensland 12-month price chart (Source: Market Index)