With reporting season coming to a close, blackout periods are now being lifted across a number of companies.
This means directors and management are now able to buy and sell shares.
There’s been a lot of movement in ASX shares this week. Let’s dive into four companies where directors purchased shares.
1. Jumbo Interactive Ltd (ASX: JIN)
Jumbo founder and Chief Executive Mike Veverka purchased 6,578 securities on market for $15.18 per share (total: $99,907).
He currently owns 9,532,357 shares or about 15% of the business.
Chairwoman Susan Forrester also bought 9,000 shares on the market post the result totalling $141,000.
The Jumbo share price has fallen about 17% since releasing its FY21 result. The market was underwhelmed by the low active member’s growth and change in segment reporting.
This is a high-quality management team rolling out a new strategy around its software-as-a-service lottery platform.
I think it warrants a further look and some near-term patience for the company to execute.
2. Northern Star Resources Ltd (ASX: NST)
Northern Star Chief Executive Stuart Tonkin and his related entities purchased 50,000 shares on market at $9.38 per share.
The total outlay for the shares was $469,172.14, equal to about 40% of his FY21 cash salary.
The Northern Star share price is down 26% in 2021.
Gold isn’t something I typically invest in, but ~$470,000 is no spare change.
3. Tabcorp Holdings Limited (ASX: TAH)
Bruce Akhurst purchased 30,000 shares on market for $4.83, parting with $145,050.
He now owns 150,000 shares in the company.
He is currently a director at Tabcorp but is set to become the chair of the wagering business when the demerger is completed early next year.
I think Tabcorp looks interesting at its current price and definitely deserves a spot on your watchlist (hint: lotteries is the crown jewel).
4. Pointsbet Holdings Ltd (ASX: PBH)
Chairman Brett Paton purchased 218,177 shares in Pointsbet’s most recent retail entitlement.
The offer entitled shareholders to 1 for 9 pro-rata rights offer at $8.00 per share. Therefore, Paton paid $1.75 million for the shares.
His shareholding currently sits at 15,498,105, a considerable amount of wealth tied up in the business.
Its been a volatile year for Pointsbet shareholders. The share price rocketed upwards of $16 in February before trending down to currently sit at $10.59, down 8% for the year.
My take
The old market saying goes “there are many possible reasons to sell a stock, but only one reason to buy”.
I tend to agree. If insiders are making the decision to purchase shares, it’s probably a good indicator to do some further research.
It by no means guarantees share price performance, however, at least it aligns your interests with those who are managing the company.
Insiders were also sellers this week. Be sure to cheeck out the four CEO’s who sold shares this week.
