Is a 21% drop in a month spurring insider buying on this ASX 200 stock? - Kalkine Media

October 24, 2023 09:35 PM AEDT | By Team Kalkine Media
Follow us on Google News:

Bapcor Ltd (ASX: BAP), an ASX consumer stock, has seen its share price decline by a significant 21% in the past month. The recent dip might be one of the driving factors behind a series of insider purchases, as seven out of eight members of Bapcor's board of directors increased their holdings in the company. This trend follows a disappointing update delivered at the annual general meeting (AGM) and an 11.5% share price drop on the AGM day, closing at $5.91. 

Insider Buying Trend:  
An analysis of recent ASX disclosures reveals that seven board members of A participated in insider buying. These purchases occurred late last week, with all seven directors acquiring additional shares. 

Key Insider Buys: 

  • CEO and managing director, Noel Meehan, made the largest purchase, buying 35,778 Bapcor shares on-market at $5.5567 per share through a family superannuation fund, increasing his holdings in the fund by 28%. 
  • Kate Spargo, who was planning for retirement, purchased 10,000 more shares through her super fund on-market at $5.589 per share, raising her personal super holdings in Bapcor by 50% to 30,000 shares. 
  • Rebecca Dee-Bradbury, who joined the Bapcor board on September 1, acquired 10,000 shares on-market at $5.58 apiece through a family trust. 
  • Independent non-executive chair, Margaret Haseltine, bought 6,500 shares via her personal super fund on-market at $5.64 each. 
  • Mark Bernhard purchased 5,000 shares on-market at $5.78 per share, increasing his stake by 22% to 27,500 Bapcor shares. 
  • James Todd obtained 5,000 shares at the most favorable price in the group, paying $5.41 each on-market via his super fund. 
  • Brad Soller acquired 3,500 shares on-market at $5.519 apiece. 

Potential Reasons for Director Buys:  
While it is impossible to definitively ascertain each director's motivation for purchasing additional Bapcor shares, the recent 21% decline in the company's share price could be a motivating factor. Buying the dip is a common strategy for confident investors who believe in a company's future prospects. When share prices drop, purchasing additional stock at a lower cost can effectively reduce the average per-share value of all existing holdings, a technique known as dollar-cost averaging. Additionally, insider buys by company directors often provide reassurance to investors, as they convey a sense of confidence in the company's future. Directors' investments using their personal funds underscore their commitment to the business and are seen as a positive sign by market participants. 

The recent wave of insider purchases within Bapcor Ltd amidst a substantial share price decline may suggest that the company's board members perceive the stock as an attractive opportunity. While insider buys should not be the sole basis for investment decisions, they often indicate a level of confidence and commitment from those within the organization, which can resonate positively with investors considering ASX consumer stocks 


The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.

Top ASX Listed Companies

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK