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

The words short selling in red against a black background
Share Market News

These are the 10 most shorted ASX shares

Let's see which shares short sellers are targeting this week.

Read more »

Woman in celebratory fist move looking at phone
Broker Notes

Top brokers name 3 ASX shares to buy next week

Brokers gave buy ratings to these ASX shares last week. Why are they bullish?

Read more »

A female financial services professional with a manicured black afro hairstyle turns an ipad screen to show a client across the table a set of ASX shares figures in graph format.
Share Market News

Record CBA share price and blockbuster merger push ASX 200 financials sector to the top

ASX financial stocks led the 11 market sectors last week with a 1.95% gain.

Read more »

A graphic showing a businessman running up a white upwards rising arrow symbolising the soaring Magellan share price today
Share Market News

CBA Shares in focus: How Australia's most valuable company is using AI to compete

Could AI initiatives drive CBA shares higher?

Read more »

Man jumps for joy in front of a background of a rising stocks graphic.
Broker Notes

These ASX 200 shares could rise 20% to 50%

Looking for big returns? Brokers think these shares could do the job.

Read more »

asx share price represented by cartoon letters spelling the word FOMO
Share Market News

What did Macquarie's "FOMO Meter" reveal about the stock market in May?

Is the market getting frothy or is there still room to climb?

Read more »

Market up or down
Share Gainers

Here are the top 10 ASX 200 shares today

ASX investors had a rough end to the week...

Read more »

Man in an office celebrates at he crosses a finish line before his colleagues.
Share Gainers

4 ASX 200 shares racing ahead of the benchmark this week

ASX investors sent these four stocks soaring 12% to 18% this week. But why?

Read more »