Director Transactions

Insider Trades: This ASX 200 director sold $9 million worth of shares last week

Wed 19 Apr 23, 2:48pm (AEST)
bearish bear
Source: iStock

Key Points

  • Only one large cap company logged a director transaction last week
  • Wesfarmers Managing Director sold $9 million worth of shares

A summary of S&P/ASX 200 director transactions worth more than $10,000 for 7-13 April.

Believe it or not – The only transaction we recorded for the above period was from Wesfarmers Managing Director Rob Scott. Perhaps everyone else was taking it easy for the Easter Holidays?

Top ASX 200 transactions

Code

Company

Date

Director

Type

Price

Value

Notes

WES

Wesfarmers

11/04/23

Rob Scott

Sell

$51.84

$5,088,506

On-market trade

WES

Wesfarmers

11/04/23

Rob Scott

Sell

$51.81

$3,948,906

On-market trade


Wesfarmers: A closer look

There hasn’t been much insider activity for Wesfarmers in the last twelve months.

Date

Director

Type

Price

Value

Notes

11/04/2023

Rob Scott

Sell

$51.84

-$5,088,506

On-market trade

11/04/2023

Rob Scott

Sell

$51.81

-$3,948,906

On-market trade

2/11/2022

Mike Roche

Buy

$44.94

$67,410

On-market trade

2/09/2022

Rt Hon Simon English

Buy

$47.05

$53,166

On-market trade

2/09/2022

Mike Roche

Buy

$46.95

$49,297

On-market trade


Wesfarmers shares have remained resilient against the weakening macroeconomic backdrop, up 13.6% year-to-date and trading close to 14-month highs. Though, the stock remains 23% below its August 2021 all-time high of $67.20.

Wesfarmers Ltd (ASX WES) Share Price - Market Index
Wesfarmers five year price chart (Source: Market Index)

From a broker perspective, Goldman Sachs covered the stock on 26 March with a SELL rating and a $42.70 target price. Some of the key takeaways from the note include:

  • Risks to Chemicals: “Management highlighted that ammonia prices have fallen from ~1100 US$/t to ~650US$/t … Our forecast factors in peak profitability in 1H23 and begins to soften from 2H23 through to FY25.”

  • Lithium uncertainty: Mixed views on lithium. Management expect high grade spodumene and costs to be towards the low end of the cost curve. However, “we continue to expect the price of lithium to fall in 2H23.”

  • Softening sales: “We expect Bunnings to be more defensive vs. other household related retailers, the outlook remains for softening comp sales and margin growth.”

  • Home improvement to weaken: “Our earnings outlook for the discount department stores Kmart and Target is weaker than street expectations in terms of recovery. We expect home improvement sales trends will turn negative in 2H23 and look for results as a catalyst as evidence of these trends.”

Consumer confidence is another data point to look at – which bounced 9.4% in April after the RBA paused rates after ten consecutive hikes.

BullConsumerSentiment
Consumer sentiment index (Source: Westpac Economics)

“Confidence is now at its highest level since June 2022 although still 10.4% below April 2022, the month before the RBA Board began raising the cash rate,” noted Westpac Economics.

“Despite this lift in April, we still characterise Consumer Sentiment as weak and consistent with Westpac’s view that consumer spending through 2023 and at least the first half of 2024 will be lack-lustre.”

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Written By

Kerry Sun

Content Strategist

Kerry holds a Bachelor of Commerce from Monash University. He is an avid swing trader, focused on technical set ups and breakouts. Outside of writing and trading, Kerry is a big UFC fan, loves poker and training Muay Thai. Connect via LinkedIn or email.

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