Insider Trades: Two ASX 200 Directors buying into weakness + Two major selldowns

Welcome back to the Insider Trades Series – A summary of on-market director transactions valued at more than $10,000 that have taken place between 30 November and 4 December 2023.

Top ASX 200 Director Buys

Karoon Energy (ASX: KAR) raised $480 million earlier this month at $2.05 per new share or a 14.6% discount to pre-raise prices. The stock tanked around 14% between 15-17 November.

The proceeds were used to acquire a 30% interest in the Who Dat and Dome Patrol oil and gas fields, associated infrastructure and adjacent exploration acreage, offshore Louisiana in the Gulf of Mexico, US.

Most brokers were bullish on the M&A – Citi upgraded its target price to $3.50 from $3 and retained a Buy rating. Some of the key points from the Citi noted include:

• "Karoon has acquired producing assets with development upside potential in US Gulf of Mexico."

• "The real benefit of the deal may attract incremental buying from investors who had otherwise had less exposure to KAR’s equity given the single asset risk."

• "We see this transaction as being value accretive to Karoon’s existing business. At Citi’s price deck, the deal is ~6% accretive."

Karoon shares have struggled to bounce in recent weeks amid the downward spiral in oil prices.

Brent crude fell below US$70 a barrel on Wednesday for the first time since late June. Prices are now down around 26% since the 28 September peak.

Karoon Energy 12-month price chart (Source: Market Index)

Healius (ASX: HLS) Non-Executive Directors are buying the dip. For context, the stock has not traded at these sub $1.50 levels since 1999. The stock was already in a downward spiral and kicked off an emerging capital raise to help reset its balance sheet and lower debt. The $154 million raise was conducted at $1.20 per share or a steep 34.6% discount to pre-raise prices.

Healius shares experienced a powerful oversold bounce between 22 November and 4 December, up 32% to $1.60. But the market and analysts remain bullish.

• In the face of the rally, short interest in Healius experienced a 1.1% uptick between November 22-29 to 3.8%

• Consensus target prices have been slashed by more than 50% in the past two weeks.

Healius 12-month price chart (Source: Market Index)

The ASX 200 Insider Sells

Shares in Capricorn Metals (ASX: CMM) have sold off around 12% since 4 December after two directors sold a combined 7 million shares.

The main trade (not listed above) was from Executive Director Mark Clark, who sold 5 million shares and now retains 17.2 million shares (4.5% of the company's shares on issue).

"Both have been directors of Capricorn since July 2019 and have made significant personal investments in Capricorn shares. They have been part of a board and executive team that has overseen the growth of the company from a market capitalisation of approximately $80 million to around $1.8 billion today," the company said in a statement.

"Mr Clark and Mr Okeby remain significant long-term shareholders of the Company and have no intention to sell any further shares in the medium term."

Capricorn Metals 12-month price chart (Source: Market Index)

Life360 (ASX: 360) also experienced downward pressure after co-Founder and CEO Chris Hulls sold a small percentage of his shares to cover personal tax obligations.

“While I do not have any other major liabilities coming due, I plan to slowly diversify my holdings over the next five years in-line with US market norms, where founders with significant concentration in their companies regularly implement conservative diversification plans," he said in a statement.

Life360 12-month price chart (Source: Market Index)

Top Small Cap Director Trades