Cousins doubles Telstra stake
Two non-executive board members of Telstra bought shares after a 9 per cent earnings increase was released.
Geoffrey Cousins more than doubled his stake, while Nora Scheinkestel topped up.
Telstra likes to think of itself as the very model of a modern corporate citizen and has a range of policies covering everything from sexual orientation to directors' share ownership.
Its guidelines call for non-executive directors to hold shares equal to at least half their annual fees.
Cousins has been on the board for six years, collected about $259,000 in fees last year and before this week had a Telstra stake worth about $148,000.
His share purchase on Tuesday cost $232,750, or $4.66 a share, compared with the $2.81 a share he paid for 10,000 shares back in 2010.
Elsewhere, various directors of Coffey International - operating in areas such as environmental services, consultant engineering and technical services to the mining industry - were all over the stock.
Five of the seven-member board bought shares at around 40¢.
Seven or eight years ago the stock was a market darling - hitting $5 - but in more recent times was fetching around 30¢.
Chairman John Mulcahy said the other day that the turnaround of the business was on track and was well placed to deliver sustainable earnings growth.
The scrip has improved 21 per cent since the interim result.
Donald McGauchie was a buyer of shares in Australian Agricultural Co after recent positive comments from the biggest cattle producer in Australia.
On the investment company front, Bruce Ballantine Teele once again was a seller and Robert Patterson, from Argo Investments, also sold stock.
Mark Newman, a director of K2 Asset Management, was a seller.
Hills Holdings has continued to recover from a share price selloff last year; chairman Jennifer Hill-Ling bought after a near-halving of earnings before large write-offs.
Frequently Asked Questions about this Article…
Two non-executive Telstra directors bought shares after the company reported a 9% increase in earnings. Director buying after an earnings upgrade can signal board confidence in the company’s prospects — in this case Geoffrey Cousins more than doubled his holding and Nora Scheinkestel also topped up.
Geoffrey Cousins paid about $232,750 in a recent purchase at $4.66 a share. Before this buy he had a Telstra stake worth about $148,000 and has been on the board for six years.
Telstra’s guidelines call for non‑executive directors to hold shares equal to at least half their annual fees, reflecting the company’s policy that directors have meaningful ownership of the business.
Five of Coffey International’s seven directors bought shares at around 40¢ each. The stock has recovered about 21% since the interim result, and chairman John Mulcahy said the company’s turnaround is on track to deliver sustainable earnings growth.
The article notes Donald McGauchie bought shares in Australian Agricultural Co after positive comments about that business; Bruce Ballantine Teele and Robert Patterson (Argo Investments) were sellers; Mark Newman of K2 Asset Management sold stock; and Hills Holdings chairman Jennifer Hill‑Ling bought shares as the company recovered.
Director buying can indicate confidence from insiders in the company’s outlook — for example, several Telstra and Coffey directors bought after positive results in this article. However, it’s just one signal and investors should consider broader fundamentals, strategy and risks before acting.
Hills Holdings has been recovering from a share price selloff last year. Chairman Jennifer Hill‑Ling bought shares after the company reported earnings that had nearly halved before large write‑offs, suggesting confidence in the recovery.
Donald McGauchie bought shares in Australian Agricultural Co following recent positive comments about the company, which is Australia’s biggest cattle producer — his purchase was highlighted as part of director market activity.
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