Insider Trades: Two ASX 200 directors bought the dip last week
Elders and Syrah Resources shares have been smashed in the past 12 months. But insiders are buying.
Source: iStock
Mentioned
KEY POINTS
- A Corporate Travel Management insider offloads $1.25m worth of shares last week
- Syrah and Elders directors are buying the dip
- Westpac's non-executive director Nora Scheinkestel buys a parcel despite intensifying margin headwinds for banks
Welcome back to the Insider Trades series – A summary of director transactions between 17-22 May valued at more than $10,000. Insider activity has slowed this week, so we’ve expanded our scope to include stocks in the mid cap space as well.
Top Insider Transactions
Code | Company | Date | Director | Type | Price | Value | Notes |
|---|---|---|---|---|---|---|---|
Corporate Travel Management | 18/05/23 | Laura Ziolkowski | Sell | $21.15 | $1,253,906 | On-market trade | |
Syrah Resources | 17/05/23 | James Askew | Buy | $0.91 | $182,000 | On-market trade | |
Elders | 17/05/23 | Ian Wilton | Buy | $6.89 | $103,350 | On-market trade | |
Westpac | 22/05/23 | Nora Scheinkestel | Buy | $21.22 | $49,442 | On-market trade | |
Helia Group | 18/05/23 | Leona Murphy | Buy | $3.38 | $37,416 | On-market trade | |
Ooh!Media | 17/05/23 | Philippa Kelly | Buy | $1.26 | $35,280 | On-market trade | |
Australian Foundation Investment | 18/05/23 | Robert Freeman | Buy | $7.14 | $19,006 | On-market trade |
Interesting Observations
Corporate Travel: Executive Director Laura Ziolkowski sold $1.25 million worth of shares last week, marking the company’s first insider sale since September 2021. On 13 April, Corporate Travel shares rallied 12% to an 8-month high after announcing a contract with the UK Home Office worth approximately $3.0 billion over two years.
Corporate Travel 12-month price chart (Source: Market Index)
Syrah Resources: In early February, CEO Shaun Verner sold three parcels worth a collective ~$440,000 at an average price of around $2.05. The stock is currently almost 60% below his exit point. Syrah has been battered by disappointing results, with its latest quarterly flagging higher-than-expected costs and the decision to moderate graphite production until “demand conditions and sales orders at economic prices warrant higher capacity utilisation.” The stock is trading at levels not seen since December 2020. Are insiders seeing some value at such depressed prices?
Syrah Resources 12-month price chart (Source: Market Index)
Elders: Elders follows a similar narrative as Syrah – The stock is down 37% year-to-date amid softening livestock trading conditions, weaker crop prices and unseasonably wet weather. Its half-year FY23 results earlier this month flagged a 45% drop in profits to $50.6 million. The $103,350 buy from Non-executive Director Ian Wilton marks the first insider buy since December 2022.
Elders 12-month price chart (Source: Market Index)
Westpac: There’s been a lot of scrutiny about banks and how the tailwinds from higher rates is starting to fade. Last week, Morgan Stanley said that large rate hikes drove 19 bps of margin expansion for major banks in late 2022 but now expects margins to fall an average 15 bps over the next 18 months. The broker said it favours banks that can best manage margin headwinds and limit cost growth – And its order of preference was ANZ, Westpac, NAB then Commonwealth Bank. Non-executive Director Nora Scheinkestel’s buy represents the first insider trade this year, at a time when the stock is down 10.5% year-to-date and near 8-month lows.
Westpac 12-month price chart (Source: Market Index)
