Insider Trades: Directors bought and sold shares in these 16 ASX 200 stocks last week

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 18 and 22 November 2024. Directors have up to 5 business days to notify the ASX of their trades.

Top ASX 200 Insider Buys

Interesting Takeaways

Lendlease appointed John Gillam as a Non-Executive Director and Chairman in October 2024. Mr. Gillam brings extensive leadership experience, having previously served as CEO of Bunnings Group, Chairman of Officeworks, and Managing Director of chemicals company CSBP. Despite his prestigious appointment, the company's shares have faced challenges, declining around 6% year-to-date after experiencing a steep drawdown of approximately 27%.

Lifestyle Communities Non-Executive Director David Blight purchased 37,190 shares last week, lifting his beneficial holding to 50,000 shares. The stock is down 50% year-to-date following weaker-than-expected earnings, negative media coverage about exit fees, and earnings downgrades. On 15 July, Lifestyle shares experienced an 18% selloff after ABC reported complaints from homeowners in the Wollert area regarding deferred management fees that can reach up to 20% of the gross resale price. Citi analysts recently noted that the negative media coverage has dramatically impacted sales, with monthly transactions running at less than half their previous levels. They warned of potential downward pressure on FY25 forecasts due to an uncertain sales outlook and potential cancellations.

Technology One shares have almost doubled year-to-date but Lead Independent Director and Non-Executive Chairman Patrick O-Sullivan doesn't seem to mind buying near all-time highs. The company reported its FY24 results last week, with profit before tax up 18% year-on-year, surpassing its own guidance of 12-16%. While most analysts have shifted to a Neutral rating due to valuation concerns, the company's robust cash flow and strong balance sheet position it well for potential acquisitions aimed at driving Annual Recurring Revenue (ARR) growth.

Top ASX 200 Insider Sells

Interesting Takeaways

Netwealth's founders, Matthew and Michael Heine, continue to maintain a significant stake, owning approximately 113.4 million shares or 46.3% of the company through various trusts, including Heine Brothers Ltd Pty. Although the founders have recently sold around 4.96 million shares since October and 8.9 million shares year-to-date, the stock continues to trend higher. Netwealth shares have surged 107% year-to-date, supported by strong growth in funds under administration (FUA) and bullish equity markets. The company's FUA has dramatically expanded from $14 billion in FY18 to $95 billion in the first quarter of FY25. Most analysts maintain a Neutral rating, citing valuation concerns. As Macquarie analysts noted last month, while they struggle with the current ~57x near-term price-to-earnings multiple, they see limited catalysts for a de-rating given the company's strong pipeline.