Fund managers are buying EML Payments (ASX:EML) and this ASX share

Fund managers have been buying EML Payments Ltd (ASX:EML) and this ASX share . Here's what you need to know…

| More on:
guy helping girl invest in shares and dividends

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

I like to keep an eye on substantial shareholder notices. This is because these notices give you an idea of which shares large investors, asset managers, and investment funds are buying or selling.

Two notices that have caught my eye are summarised below. Here's what these fund managers have been buying:

Cleanaway Waste Management Ltd (ASX: CWY)

According to an initial substantial holder notice, Challenger Ltd (ASX: CGF) has been building a position in this waste management company in 2021.

The notice reveals that Challenger has been buying shares since 19 January and recently took its holding to 105,183,013 shares on 19 May. This is the equivalent of a 5.11% stake in Cleanaway.

Given that its buy price on 19 May was broadly in line with where the Cleanaway share price trades today, its analysts appear to still see a lot of value at current levels.

One broker that might agree is Macquarie Group Ltd (ASX: MQG). Its analysts currently have an outperform rating and $3.00 price target on the company's shares. This compares to the latest Cleanaway share price of $2.77.

EML Payments Ltd (ASX: EML)

A notice of change of interests of substantial holder reveals that Commonwealth Bank of Australia (ASX: CBA) has been taking advantage of recent weakness in the EML Payments share price to increase its position.

The release shows that Commonwealth Bank (via its subsidiaries) picked up approximately 4.3 million shares over the last couple of weeks. This has increased its stake to 26,374,609 shares, which equates to a 7.3% interest. This is up from 6.1% previously.

The EML Payments share price has lost a third of its value since 15 May due to concerns over its European operations. Judging by its purchases, Commonwealth Bank appears to see this as a buying opportunity.

Analysts at UBS would agree. Last week they reaffirmed their buy rating but trimmed their price target to $5.30. The EML Payments share price ended the week at $3.42.

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends EML Payments. The Motley Fool Australia owns shares of and has recommended Challenger Limited. The Motley Fool Australia has recommended EML Payments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

Unsure man analysing data on laptop.
Share Gainers

Here are the top 10 ASX 200 shares today

ASX investors had a rough start to the week this Monday.

Read more »

A man slumps crankily over his morning coffee as it pours with rain outside.
Broker Notes

Guess which popular ASX 200 stock Bell Potter just downgraded

Let's see what the broker is saying on this blue chip.

Read more »

Crude oil barrels rocketing.
ETFs

Why did the BetaShares Crude Oil ETF just spike 4%?

This ETF is attracting buyers in today's seller's market.

Read more »

A male sharemarket analyst sits at his desk looking intently at his laptop with two other monitors next to him showing stock price movements
Broker Notes

Leading brokers name 3 ASX shares to buy today

Here's why brokers believe that now could be the time to snap up these shares.

Read more »

Woman with an amazed expression has her hands and arms out with a laptop in front of her.
Share Gainers

Why BWP, Metcash, Resolute Mining, and SHAPE shares are pushing higher today

These shares are starting the week on a positive note. But why?

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why Adairs, ANZ, Aurelia Metals, and Pilbara Minerals shares are falling today

These shares are having a tough start to the week in the red. But why?

Read more »

Miner standing in a mine site with his arms crossed.
Broker Notes

Up 41% in 2025, does Macquarie think Lynas Rare Earths shares have peaked?

The company is up nearly 400% in 5 years.

Read more »

A financial expert or broker looks worried as he checks out a graph showing market volatility.
Share Market News

How far could equity markets fall following the US' attack on Iran?

If oil prices rise, it could be bad news for investors.

Read more »