Pssst! These are the ASX stocks company insiders are buying and selling

Directors have access to the best information about their companies than any other market participant. They are, therefore, subject to very strict regulations relating to their trading in their companies’ shares.

We want our directors to have skin in the game. We want them to work as hard as possible towards growing the value of the company and our investment.

A director willingly going to the market to purchase more shares in the company at which they work is one of the most powerful signals investors can get about the health of that company.

At the same time, we have to respect that sometimes directors must sell to sensibly manage their personal financial affairs (such as the latest 7-Series BMW, or a new wing on the mansion!), and for founders, to de-risk their own portfolio which likely consists only of their founding holdings.

The latter was the case for the sale by Gary Crispe who sold $1.875 million worth of shares in racing and wagering data provider Ras Technology Holdings (ASX: RTH). According to the company’s media release following the sale, Mr Crispe still retains a 17.7% stake in the company.

Directors are only human, and what human director can resist the new BMW 7-Series?

And we should keep in mind that directors are only human – like us they can get their timing wrong! So automatically assume the buys in the list below are a precursor to a major share price surge.

But, generally, when directors do trade, particularly via the term used in ASX director interests notices of “On-market trade”, it’s worth taking note of. Compared to getting free performance shares from the company, this method of purchase involves digging into a director’s own pocket. The deeper the better.

Here are the most important director transactions on the ASX for last week:

Director transactions week ending 17 May 2024 (SPP = Share purchase plan)

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360 Capital Mortgage REIT (ASX: TCF)

360 Capital Mortgage REIT (TCF) chart

Company description: Provides investors access to fixed income and private credit investment opportunities across listed and unlisted issuers.

Director Transaction: Tony Pitt, +$121,667, On-Market Trade 

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Santana Minerals (ASX: SMI)

Santana Minerals (SMI) chart

Company description: Gold explorer and developer of the Bendigo-Ophir Project in New Zealand.

Director Transaction: Peter Cook, +$110,000, On-Market Trade 

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L1 Long Short Fund (ASX: LSF)

L1 Long Short Fund (LSF) chart

Company description: A global investment manager with offices in Melbourne, Sydney, Miami and London. The company invests (both long and short) in predominantly Australian securities with the remaining exposure to global securities.

Director Transaction: Mark Landau, +$108,391, On-Market Trade; Raphael Lamm, +$71,116, On-Market Trade 

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Praemium (ASX: PPS)

Praemium (PPS) chart

Company description: An investment platform catering to the high net worth (HNW) investor market. Servicing Private Wealth firms, intermediaries, and several global financial institutions.

Director Transaction: Anthony Wamsteker, +$88,000, On-Market Trade

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BSP Financial Group (ASX: BFL)

BSP Financial Group (BFL) chart

Company description: A financial services provider in the South Pacific. BSP is a lender in PNG, the Solomon Islands, Tonga, the Cook Islands, Samoa and Fiji. It serves both retail and corporate customers, and provides non-banking services through BSP Life, BSP Capital and BSP Finance.

Director Transaction: Robert Bradshaw, +$73,123, On-Market Trade 

Ballymore Resources (ASX: BMR)

Ballymore Resources (BMR) chart

Company description: A Queensland-based exploration and development company featuring a portfolio of gold, silver, copper, lead, and zinc targets.

Director Transaction: Andrew Greville, +$51,680, On-Market Trade

Calidus Resources (ASX: CAI)

Calidus Resources (CAI) chart

Company description: A gold exploration company that controls the Warrawoona Gold Project in the East Pilbara district of the Pilbara Goldfield in Western Australia.

Director Transaction: David Reeves, +$152,170, Placement (whilst not strictly an On-market trade, this director participated in the company’s placement, which still requires investing extra personal funds)