Director Deeds: Eerie silence
It’s been a relatively subdued fortnight of director action with just 89 buys and 13 sells taking place from April 7 to April 19.
And for the first time since I began writing this column, there wasn’t a single director purchase that was worth over $1 million. Nevertheless, some familiar companies feature in this week’s edition of Director Deeds.
Alan Kohler interviewed the CEO of Brickworks (ASX: BKW), Lindsay Partridge, earlier this month following the company’s release of its half-year results. Just a week after Kohler’s interview, Partridge topped up his stake, buying 25,000 shares at a trade price of $20.53. The $513,250 investment brings Partridge’s total holding to 213,096 shares.
There’s been more director buying at Dicker Data (ASX: DDR) by executive director Vladimir Mitnovetski, who has now featured in the past two editions of Director Deeds. Mitnovetski decided to top up his stake again on April 12, buying another 10,000 shares in the company at a trade price of around $10.05. The $100,500 investment takes Mitnovetski’s total holding to 711,081 direct shares and 25,953 indirect shares.
Australian data centre operator NextDC (ASX: NXT) saw some director buying through one of its non-executive directors Jennifer Lambert. On April 7, Lambert bought 6,154 shares at a trade price of $11.35 – a purchased valued at nearly $70,000. It takes Lambert’s total holding in the company to 18,000 shares.
Respiratory protection equipment-maker CleanSpace Holdings (ASX: CSX) saw its chairman Ronald Weinberger top up his stake earlier this month. On April 15, Weinberger purchased 24,200 shares at $2.06. The near $50,000 investment brings his total holding to 187,861.
There was also some director buying at freight rail transport company Aurizon (ASX: AZJ) through non-executive director Sarah Ryan. On April 14, Ryan purchased 1,383 shares at $3.90 and 8,617 shares at $3.89. The combined total purchase of 10,000 shares is valued at $38,914 and brings Ryan’s stake in the company to 33,000 shares.
Natural gas and electricity operator APA Group (ASX: APA) saw a smaller buy from independent director Rhoda Phillippo. On April 8, Phillippo purchased 2,000 shares at $10.15 a pop – a $20,300 investment. The transaction brings her total holding in the company to 4,000 indirect shares and 1,000 direct shares.
Onto the sells and the biggest sale over the past fortnight came from the CEO of software solutions provider WiseTech Global (ASX: WTC). Richard White, who cashed out over $100 million in shares last year, has again hit the sell button between April 12 and April 16. White disposed of 155,489 shares at an average price of $31.83 per share, bringing him a near $5 million payday. The best news for White is that he still holds over 8.3 million director shares and nearly 126 million indirect shares.
There was also a major sale from a director at litigation funding company Omni Bridgeway (ASX: OBL). Executive director Hugh McLernon sold 1 million shares in the company at an average price of $3.63 per share, bringing him in a $3.63 million payday.
There’s been a string of director sales at lithium miner Sayona Mining (ASX: SYA) across the dates of April 9 to April 14. It started with non-executive director Alan Buckler selling 15.2 million shares at 3.7 cents on April 9, followed by CFO and executive director Paul Crawford disposing of 8.1 million shares at 4 cents a pop on April 12. Two days later, CEO Brett Lynch sold 13.1 million shares at 3.2 cents with the combined sales worth a touch over $1.3 million. Sayona released a statement saying the sell-off was undertaken to fund “an increased acceptance of their (directors’) rights under the entitlement offer”. It said the effect of this is to “provide additional funds to the company and restore their shareholding following allotment of the entitlement shares.”
The boss of chartered accounting network Kelly Partners Group (ASX: KPG) has sold down his stake over two transactions earlier this month. On April 12, Brett Kelly disposed of 55,000 shares at $2.02 per share – a sale worth $111,233. He followed this up on April 14 by selling a further 15,000 shares at $2.04 per share, a transaction valued at $30,592. The combined sell down was therefore worth $141,825 and leaves Kelly with a bit over 22.6 million shares.
Frequently Asked Questions about this Article…
Over the fortnight April 7–19 there were 89 director buys and 13 sells reported. It was a relatively subdued period and, for the first time in this column's history, no single director purchase exceeded $1 million.
Several directors topped up holdings: Brickworks CEO Lindsay Partridge bought 25,000 shares for $513,250 (bringing his holding to 213,096); Dicker Data executive director Vladimir Mitnovetski bought 10,000 shares (~$100,500) increasing his direct holding to 711,081 (plus 25,953 indirect); NextDC non-executive Jennifer Lambert bought 6,154 shares (~$70,000) to hold 18,000; CleanSpace chairman Ronald Weinberger bought 24,200 shares (~$50,000) to hold 187,861; Aurizon non-executive Sarah Ryan bought a total of 10,000 shares (~$38,914) to hold 33,000; and APA independent director Rhoda Phillippo bought 2,000 shares (~$20,300), bringing her to 4,000 indirect and 1,000 direct shares.
Notable sales included WiseTech Global CEO Richard White disposing of 155,489 shares at an average ~$31.83 (near $5 million) while still holding over 8.3 million director shares and nearly 126 million indirect shares; Omni Bridgeway executive director Hugh McLernon selling 1 million shares at an average $3.63 (~$3.63 million); Sayona Mining directors selling a combined large parcel across April 9–14 (15.2m, 8.1m and 13.1m shares at low cents per share totaling just over $1.3 million); and Kelly Partners CEO Brett Kelly selling 70,000 shares across two trades for about $141,825 (leaving him with ~22.6 million shares).
Sayona Mining said the director sell-off was to fund an increased acceptance of their rights under the entitlement offer. The company said this would provide additional funds to the business and restore the directors' shareholdings following allotment of the entitlement shares.
From the article's examples, investors can note a few facts: transaction size matters (many buys were modest and no purchase topped $1 million this fortnight), context matters (Sayona’s sales were explicitly linked to an entitlement offer), and continued ownership after selling can be telling (for example, Richard White still holds substantial director and indirect stakes). Director trades are one data point to combine with company results and announcements rather than a sole basis for investment decisions.
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