Insider trades: The most important ASX insider buys and sells for the September quarter

It pays to know which insiders are buying and selling. Join Chris Conway and Kerry Sun for a deep dive into September quarter insider moves.
Chris Conway

Livewire Markets

Welcome to the second instalment of our quarterly breakdown of ASX insider moves, brought to you by myself and my colleague Kerry Sun.

If you're new to the series, you can get a recap on the research that drives the series and the previous instalment via the links below: 

As always, who is buying and selling makes for fascinating reading and we’ll be sharing with you the companies that have seen multiple insiders buying and selling during the period, and the top insider buys and sells by dollar amount.

Multiple insiders making moves

For me, the number of insiders buying (or selling) their own stock is always the most telling insight from the data.

Whilst some companies have one or two directors doing a lot of buying or selling (i.e. many transactions), when three, four, or more directors in the same company are all making the same move, it's a stronger signal. Let's not forget that these people sit around the same board table and respond to the same stimulus.

There were 50 companies (up from 35 in the prior quarter) with three or more different insiders making moves during the September quarter, which are listed below. I've also highlighted a few sets of transactions that really stand out. 

Ticker Company Insider Count Sum
ASX: AMI Aurelia Metals Ltd 7 $362,679
ASX: S3N Sensore Ltd 6 $485,000
ASX: ASX ASX Ltd 5 $856,655
ASX: COH Cochlear Ltd 5 -$1,413,292
ASX: SHL Sonic Healthcare Ltd 5 -$22,077,011
ASX: CSL CSL Ltd 4 -$11,201,905
ASX: DOW Downer Edi Ltd 4 $222,861
ASX: IRE Iress Ltd 4 $412,410
ASX: PAT Patriot Lithium Ltd 4 $68,645
ASX: PBH Pointsbet Holdings Ltd 4 $860,255
ASX: RGN Region Group 4 $271,830
ASX: SKC Skycity Entertainment Group Ltd 4 $409,810
ASX: A11 Atlantic Lithium Ltd 3 $216,980
ASX: A1M Aic Mines Ltd 3 $313,701
ASX: AGL AGL Energy Ltd 3 $317,289
ASX: ANN Ansell Ltd 3 $225,679
ASX: APM APM Human Services 3 $4,074,739
ASX: ASK Abacus Storage King 3 $533,654
ASX: BAP Bapcor Ltd 3 $414,909
ASX: BSL Bluescope Steel Ltd 3 -$2,846,680
ASX: BVS Bravura Solutions Ltd 3 $5,328,463
ASX: CTT Cettire Ltd 3 -$4,425,682
ASX: CUP Count Ltd 3 $120,887
ASX: CVB Curvebeam Ai Ltd 3 $67,454
ASX: CWY Cleanaway 3 $228,666
ASX: CYG Coventry Group Ltd 3 $2,701,382
ASX: ECG Ecargo Holdings Ltd 3 $31,678
ASX: EMD Emyria Ltd 3 $51,289
ASX: EOS Electro Optic Systems 3 $141,161
ASX: GDM Great Divide Mining Ltd 3 $34,392
ASX: GMG Goodman Group 3 -$31,056,212
ASX: GOZ Growthpoint 3 $323,030
ASX: JDO Judo Capital Holdings Ltd 3 $474,452
ASX: LCE London City Equities Ltd 3 $15,003
ASX: LLC Lendlease Group 3 $378,622
ASX: NC1 Nico Resources Ltd 3 $577,241
ASX: NHC New Hope Corporation Ltd 3 $1,324,650
ASX: NVX Novonix Ltd 3 $693,420
ASX: PEK Peak Rare EARTHS Ltd 3 $294,405
ASX: PFT Pure Foods Tasmania Ltd 3 $54,009
ASX: PRN Perenti Ltd 3 $141,275
ASX: QIP QANTM Intellectual Property Ltd 3 $259,095
ASX: R3D R3D Resources Ltd 3 $14,456
ASX: RKT Rocketdna Ltd 3 $23,901
ASX: SDF Steadfast Group Ltd 3 $387,700
ASX: SHJ Shine Justice Ltd 3 $136,072
ASX: STG Straker Ltd 3 $26,945
ASX: STO Santos Ltd 3 -$4,513,166
ASX: TAH Tabcorp Holdings Ltd 3 $224,750
ASX: TCL Transurban Group 3 $227,819

First, the big counts

Aurelia Metals (ASX: AMI)

I have been looking at this data for a while now, let's call it 15 years in my time as an analyst and then portfolio manager, and there have not been too many times that seven directors have bought stock in the same company within a short timeframe - as is the case with Aurelia Metals. 

It's really quite astounding. Eight directors are on the board at Aurelia, and seven have been buying over the past three months - with non-executive chairman Peter Botten the biggest purchaser buying almost $103,000 of shares. Yesterday, the company provided an exploration update and the share price popped 7%. As they say in the classics, follow the money. 

Aurelia Metals (ASX: AMI) - Three-month chart

Sensore Ltd (ASX: S3N)

The other stock with a large count of directors buying was Sensore Limited, with six directors all buying stock on the same day (3/8/23) for a combined total of $485,000. 

This one hasn't worked out so well so far, with the stock taking a dive on September 28 when the Annual Report was delivered. S3N operates in a niche area, combining AI with geoscientific expertise to better deliver exploration discovery, and the share price will likely be driven by newsflow at this stage of the company's life. 

Sensore Ltd (ASX: S3N) - 3-month chart

Source: Market Index
Source: Market Index

The bolters

The following companies have seen big share price moves in the quarter, sometimes quickly validating the buying that has occurred through the period. 

Cochlear (ASX: COH) - Insider moves (scroll right for full data)

Four COH directors were buying stock throughout the period, unfortunately all of them after the big share price spike on August 14. One director took the opportunity to unload stock (and a sizable chunk) after the rally from around $233 to $270. 

In the rest of the examples below, many directors have bought stock after a big share price move, i.e. after strong results or a positive company announcement. It's interesting and encouraging to see directors throwing their support behind a company after good news. 

Ticker Company Date Director Type Amount Price Value
COH Cochlear 31/08/2023 Christine McLoughlin Buy 250 $271.22 $67,805
COH Cochlear 23/08/2023 Dig Howitt Sell 6,000 $264.96 -$1,589,760
COH Cochlear 05/09/2023 Karen Penrose Buy 130 $267.74 $34,806
COH Cochlear 17/08/2023 Michael Daniell Buy 200 $246.91 $49,382
COH Cochlear 18/08/2023 Michael del Prado Buy 147 $166.50 $24,475

Cochlear (ASX: COH) - Three-month chart

Source: Market Index
Source: Market Index

Bapcor (ASX: BAP) - Insider moves (scroll right for full data)

Ticker Company Date Director Type Amount Price Value
BAP Bapcor 11/09/2023 Brad Soller Buy 7,500 $6.67 $50,025
BAP Bapcor 21/08/2023 Kathryn (Kate)
Spargo
Buy 10,000 $6.49 $64,890
BAP Bapcor 06/09/2023 Noel Meehan Buy 44,642 $6.72 $299,994

Bapcor (ASX: BAP) - Three-month chart

Source: Market Index
Source: Market Index

New Hope Corporation (ASX: NHC) - Insider moves (scroll right for full data)

Ticker Company Date Director Type Amount Price Value
NHC New Hope Corp 20/09/2023 Ian Williams Buy 10,000 $6.16 $61,600
NHC New Hope Corp 22/09/2023 Robert Millner Buy 50,000 $6.06 $302,770
NHC New Hope Corp 22/09/2023 Robert Millner Buy 50,000 $5.98 $299,005
NHC New Hope Corp 22/09/2023 Steven Boulton Buy 10,000 $5.95 $59,500
NHC New Hope Corp 22/09/2023 Thomas Millner Buy 50,000 $6.06 $302,770
NHC New Hope Corp 22/09/2023 Thomas Millner Buy 50,000 $5.98 $299,005

New Hope Corporation (ASX: NHC) - Three-month chart

Source: Market Index
Source: Market Index

Stocks with the largest insider buys

The analysis below is provided by Kerry Sun

Ticker

Company

Sum

3 Month

1 Year

ASX: BVS

Bravura Solutions

$5,328,463

+54%

-24%

ASX: TGP

360 Capital

$4,695,571

-18%

-28%

ASX: APM

APM Human Services

$4,074,739

-11%

-44%

ASX: CYG

Coventry Group

$2,701,382

+4%

-8%

ASX: TOT

360 Capital REIT

$2,578,135

-20%

-30%

Bravura Solutions (ASX: BVS) shares fell as much as 92% between August 2021 and March 2023 amid a series of poor trading updates, earnings downgrades, a steep capital raise (6 March 2023: $23m at a 53% discount) and abrupt management changes. After such a rollercoaster, maybe the business is starting to stabilise. The stock rallied 44% on the day of its FY23 result on 25 August, which noted:

  • Achieved guidance across all metrics
  • Trading performance has "driven the requirement and urgency for change," with a new CEO, Chair and refreshed board joining in the second half of FY23
  • Organisational change program set to be completed ahead of schedule by June 2024, which includes total annualised savings of $40 million
  • Forecast to achieve positive cash EBITDA run rate by the end of FY24
  • Finished FY23 with $75.7 million cash

Bravura (ASX: BVS) - Insider moves (scroll right for full data)

Ticker Company Date Director Type Amount Price Value
BVS Bravura Solutions 21/09/2023 Andrew Russell Buy 67,565 $0.74 $49,998
BVS Bravura Solutions 21/09/2023 Andrew Russell Buy 67,565 $0.74 $49,998
BVS Bravura Solutions 25/09/2023 Damien Leonard Buy 5,000,000 $0.75 $3,750,000
BVS Bravura Solutions 21/09/2023 Damien Leonard Buy 1,092,693 $0.74 $808,793
BVS Bravura Solutions 20/09/2023 Damien Leonard Buy 718,916 $0.76 $542,782
BVS Bravura Solutions 28/08/2023 Matthew Quinn Buy 100,000 $0.67 $67,458
BVS Bravura Solutions 25/08/2023 Matthew Quinn Buy 100,000 $0.59 $59,434

Bravura (ASX: BVS) - Three-month chart

Source: Market Index
Source: Market Index

Stocks with the largest insider sells

Ticker

Company

Sum

3 Month

1 Year

ASX: GMG

Goodman Group

-$31,056,212

9%

33%

ASX: SHL

Sonic Healthcare

-$22,077,011

-15%

-4%

ASX: HUB

HUB24

-$16,385,216

28%

50%

ASX: SNL

Supply Network

-$15,000,000

2%

45%

ASX: CIA

Champion Iron

-$11,900,000

5%

18%

ASX: CSL

CSL

-$11,201,905

-4%

-11%

Despite the large face value numbers, there's surprisingly little to see here. 

Goodman Good (ASX: GMG) insiders, including co-founder Gregory Goodman and Deputy CEO Anthony Rozic, have habitually sold shares post earnings (February and August) since 2014. The $31 million shares sold in the September quarter shouldn’t really stand out as a red flag. In fact, Goodman has been the top-performing S&P/ASX 200 Real Estate stock in the past twelve months, up 40.5%.

Similarly, Sonic Healthcare’s (ASX: SHL) CEO Colin Goldschmidt and CFO Christopher Wilks were responsible for the last quarter's $22 million worth of insider selling. The two have the tendency to offload some shares around September- they have done so every year since 2014. 

This was also the case for CSL Limited (ASX: CSL) and its Board Executive Director Andrew Cuthbertson and Chair Brian McNamee.

Conclusion

Don't sleep on insider buying and selling. Clear evidence gathered over big data sets and long periods shows that insider moves correlate with outperformance.

We hope you enjoyed this deep dive into the September quarter data. If you did, make sure to give it a like and feel free to offer suggestions about what else we could do to illuminate the data.

Also, if you have a stock that you have been watching and even had success with by following the insider moves, please let us know in the comments. 

........
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Chris Conway
Managing Editor
Livewire Markets

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