Insider Trades: Directors load up on shares in 11 ASX 200 companies

A summary of noteworthy S&P/ASX 200 director transactions between 6-14 March.

Top large cap insider buys

Interesting observations

Harvey Norman: Mr Harvey walks the walk

In March alone, co-founder and executive chairman of Harvey Norman, Gerry Harvey purchased six parcels worth a collective $20.7 million.

Harvey has strongly defended the company's half-year results, arguing that the retailer has the balance sheet strength to withstand economic headwinds. The interim result said otherwise, with first-half profits down 15.1% and January 2023 sales for Australian franchisees falling 10.2% against the prior period.

From a broker perspective, Goldman Sachs retained a BUY rating for the stock with a $4.70 target price. Some key takeaways from the note include:

• 2H23 sales are expected to continue to decline, while "tactical support and higher promotions will further pressure EBIT margins."

• Despite a disappointing 1H23, a Buy rating was retained due to high property valuations (~$3.3 per share at average book value or 70% of the company's market cap)

• Harvey Norman trades at approximately 6x FY24 price-to-earnings vs. JB Hi-Fi which trades at 14.5x

APM Human Services: Another founder purchase

APM listed in November 2021 at an offer price of $3.55 per share. During this time, executive chair and founder Megan Wynne was also instructed to sell approximately $71.3 million shares at the offer price.

Wynn's almost $2 million purchase represents the company's first director buy since November 2021.

On Monday, APM shares hit an all-time low of $2.13, down 40% from its offer price. The $2 million stake is down around 7% from her entry price.

Bapcor: Lots of buying

Bapcor's directors have been accumulating shares in mostly $20,000 to $80,000 blocks for more than two years.

Since 2021, there's been 19 on-market trades by various directors worth a collective $1.13 million at a weighted average price of $6.86.

That's approximately 7.6% below Bapcor's current share price of $6.40 (but the stock has also paid out 52 cents worth of dividends since 2021).