With the results season finished, directors' trading on both sides of the fence escalates.
WITH the results season finished, directors' trading on both sides of the fence escalated during the past week.
Directors doing some buying well and truly trumped the sellers, thanks to James Packer, who spent $48.4 million on Crown shares, and Raymond Barro's interests, which outlaid $13.6 million on Adelaide Brighton scrip.
Packer last bought large quantities of Crown stock in October when he acquired 22.6 million shares at about $8.88. This time his interests paid $8.07. And let's not forget Harold Mitchell, who outlaid $1 million about two months ago.
The overall scorecard registered $69 million to $27 million in favour of buying, but if the two aforementioned gambling and concrete barons were excluded, then sellers were to the fore.
Taking a big hand in the sellers' total were a collection of folk aboard the BHP Billiton gravy train. They collected shares at zero cost under various incentive plans and sold on the market to meet, they said, expected tax obligations.
Chief executive Marius Kloppers led the charge, and they sold more than $16 million of stock.
BHP directors showed up prominently among the buyers - chairman Jacques Nasser, Wayne Murdy, Carolyn Hewson, Lindsay Maxsted and Keith Rumble spent about $1.7 million between them.
BHP's policy is that non-executive directors spend at least 25 per cent of their remuneration on scrip until a holding equivalent to a year's fees is achieved. The base fee is about $140,000 a year, with more for sitting on board committees.
Meanwhile, investors who draw comfort when more than one director buys shares in a company had plenty of stocks to consider.
Multiple buying was in Amcor, AP Eagers, APA Group, Breville Group, Downer EDI, Investa Office Fund, Melbourne IT, REVA Medical, Select Harvests, Tassal Group and Transpacific, to name a few.
Among the buyers, merchant banker David Williams bought a 1 million share line of Medical Developments following the release of a strong full-year result.
NovaPort Capital cut its stake to 7.2 per cent and appeared to be the seller.
One director who opened his wallet again was Leonard Bleasel, who was mentioned in dispatches here last week when he bought about $412,000 of QBE scrip.
He switched his attention to natural gas concern APA Group, where he is chairman. He bought $200,000 of scrip, equating to $4 a share.
The reporter owns ABC shares.
Frequently Asked Questions about this Article…
What big director share purchases were reported recently in the article?
The article highlights James Packer spending $48.4 million on Crown shares and interests connected to Raymond Barro outlaying $13.6 million on Adelaide Brighton stock. It also notes Harold Mitchell bought about $1 million of Crown scrip a couple of months earlier.
At what price did James Packer buy Crown shares this time and how does that compare to his prior purchase?
This latest purchase by James Packer was made at about $8.07 a share. The article notes he last bought large quantities in October — about 22.6 million shares — at roughly $8.88 a share.
Overall, were directors net buyers or sellers of shares during the results season?
On balance the article reports directors bought about $69 million versus $27 million of selling, so buys led overall. However, if you exclude the large Crown and Adelaide Brighton purchases by Packer and Barro, sellers were in the ascendancy.
Why did some BHP executives sell shares and how much did they sell?
BHP executives who received shares under incentive plans sold some stock to meet expected tax obligations on those awards. Chief executive Marius Kloppers led that selling, with executives offloading more than $16 million of stock.
Which BHP directors were buying shares and what is BHP’s director scrip policy?
BHP non‑executive directors who bought included chairman Jacques Nasser, Wayne Murdy, Carolyn Hewson, Lindsay Maxsted and Keith Rumble — they spent about $1.7 million between them. The article says BHP policy requires non‑executive directors to spend at least 25% of their remuneration on scrip until they hold the equivalent of a year’s fees; the base fee is about $140,000 a year.
Which companies had multiple directors buying shares, and why might that matter to everyday investors?
The article lists multiple director buying in stocks such as Amcor, AP Eagers, APA Group, Breville Group, Downer EDI, Investa Office Fund, Melbourne IT, REVA Medical, Select Harvests, Tassal Group and Transpacific. Multiple directors buying can be a signal that company insiders have confidence in the business, which many everyday investors watch as one piece of information (the article does not give investment advice).
Were there other notable director or investor moves mentioned, like buys or stake changes?
Yes. Merchant banker David Williams bought a 1 million‑share line in Medical Developments after a strong full‑year result. Leonard Bleasel, who previously bought about $412,000 of QBE, bought about $200,000 of APA Group stock (around $4 a share). NovaPort Capital cut its stake to 7.2% and appeared to be a seller.
Did the article disclose any ownership or potential conflict of interest by the reporter?
Yes — the article discloses that the reporter owns ABC shares.
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