Insider Trades: Directors are buying shares in these 8 ASX 200 companies
Directors from New Hope and Tabcorp are buying into recent share price weakness.
Source: iStock
Mentioned
KEY POINTS
- New Hope shares are down around 12% year-to-date amid a slump in thermal coal prices. But insiders including Thomas and Robert Miller are buying into recent weakness
- Tabcorp's CEO scandal and subsequent resignation led to a 5.2% selloff. Insiders including Chairman Bruce Akhurst added more shares last week
- A Non-Executive Director from Commonwealth Bank bought over $100,000 worth of shares despite the stock trading at all-time highs and bearish consensus views
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 19 and 26 March 2024. Directors have up to 5 business days to notify the ASX of their trades.
New Hope Buy the Dip
New Hope shares are down around 12% year-to-date, primarily driven by lower thermal coal prices. The company's half-year FY24 results, announced on 19 March, delivered revenue of $836 million and EBITDA of $425 million, down a respective 47% and 58% year-on-year. While the numbers were largely in-line with consensus expectations, analysts expressed concerns about the outlook for thermal coal demand and the company's free cash flow. "Given FCF headwinds and multiples versus peers, we maintain our Underperform rating," Macquarie analysts said in a note dated 19 March.
Three Non-Executives including Thomas and Robert Millner bought more shares around recent lows, marking the first set of insider buys this year. You can check out their full transaction history here.
It's worth noting that Robert Millner is the Non-Executive Chairman of Washington H. Sol Pattinson (ASX: SOL) – Which also happens to own approximately 39.2% of New Hope.
Code | Company | Date | Director | Type | Price | Value |
|---|---|---|---|---|---|---|
New Hope | 22/03/24 | Buy | $4.69 | $469,240 | ||
New Hope | 22/03/24 | Buy | $4.69 | $469,240 | ||
New Hope | 26/03/24 | Buy | $4.60 | $48,288 |
Tabcorp's CEO scandal
Former Tabcorp Chief Executive Adam Rytenskild resigned last week following allegations that he proposed offering sexual favours to a female Victorian regulator last year in exchange for granting the wagering group a lucrative license. This license would have allowed them exclusive operation of wagering shops in Victoria. The stock fell 5.2% on the day of the his departure (14 March). Tabcorp shares are down 10% year-to-date and 29% in the past twelve months.
Executive Chairman Bruce Akhurst and Non-Executive Director David Gallop are buying into recent weakness.
Code | Company | Date | Director | Type | Price | Value |
|---|---|---|---|---|---|---|
Tabcorp | 20/03/24 | Buy | $0.79 | $78,810 | ||
Tabcorp | 25/03/24 | Buy | $0.76 | $19,867 |
Commonwealth Bank's insider buy
While less high-profile than the above trades, the purchase by Non-Executive Director Lynette Cobley might be of interest as she is buying i) around all-time highs and ii) marks the largest on-market buy since February 2023. Interestingly, most brokers and analysts are bearish on the banking sector, with the latest commentary from Macquarie citing that the stocks are "trading at peak multiples without a clear fundamental reason."
Code | Company | Date | Director | Type | Price | Value |
|---|---|---|---|---|---|---|
Commonwealth Bank | 20/03/24 | Buy | $116.43 | $116,434 |
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Commonwealth Bank 12-month price chart (Source: Market Index)
Top ASX 200 Insider Trades
The below trades refer to the other insider trades, all of which happen to be from non-executive directors.
Code | Company | Date | Director | Type | Price | Value |
|---|---|---|---|---|---|---|
Transurban Group | 25/03/24 | Buy | $13.17 | $52,676 | ||
Mirvac Group | 20/03/24 | Buy | $2.16 | $39,776 | ||
Atlas Arteria | 26/03/24 | Buy | $5.09 | $20,463 | ||
G.U.D | 20/03/24 | Buy | $11.20 | $18,637 | ||
Corporate Travel | 19/03/24 | Buy | $17.00 | $17,000 |
