4 ASX 200 directors who raised the stakes in their company shares in September

This can be a great sign for ordinary ASX 200 share investors.

| More on:
A man in his 30s holds his laptop and operates it with his other hand as he has a look of pleasant surprise on his face as though he is learning something new or finding hidden value in something on the screen.

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

Key points

  • These ASX 200 directors have all raised their personal stakes in the companies they run 
  • The directors are from Soul Patts, New Hope, Brickworks, and Eagers Automotive
  • Some of the trades are substantial and worth millions of dollars 

It's commonly understood in the investing world that when directors spend their own money buying more shares in the ASX companies they run, it's usually a good sign.

No one knows a business like the company directors that are calling the shots. And just like us regular ASX investors, they also want to put their money to best use for long-term wealth generation.

Directors can buy more shares directly, in their own names, using personal cash savings. They can also buy through other vehicles such as super funds and family trusts.

Sometimes they raise their 'indirect interests' in company shares when entities they are involved with purchase more stock. Either way, these are all publicly notifiable trades to the ASX.

Regardless of the type of investment, an ASX 200 director increasing their personal financial ties to shares in the companies they run should indicate confidence in the stock. Arguably, it's pretty much always a good sign.

So, let's look at who raised their direct or indirect interests in their own ASX 200 companies last month.

Which ASX 200 directors have been raising their stakes?

In no particular order, let's take a look at the following ASX 200 share purchases involving directors.

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

On 30 September, Soul Patts chair and non-executive director Robert Millner told the ASX he had increased his indirect interests in the company with the purchase of 170,000 shares on market.

The cost was more than $4.5 million and the trades took place between 23 and 28 September.

On the same day, his son and fellow non-executive director Thomas Millner made the same declaration.

In both cases, the shares were purchased through three family entities — J S Millner Holdings Pty Limited, T G Millner Holdings Pty Limited, and Mary Millner Holdings Pty Limited.

The purchase was a "notifiable interest because of a power to exercise, or control the exercise of, a right to vote shares in securities" registered in these names.

Both men are also directors of New Hope Corporation and just raised their indirect interests there, too.

New Hope Corporation Limited (ASX: NHC)

Robert Millner and Thomas Millner declared the purchase of 300,000 New Hope shares last week.

The shares were purchased for about $1.86 million through a series of trades on 28 September.

The shares were purchased through three entities — T.G. Millner Holdings Pty Limited, J. S. Millner Holdings Pty Limited, and Hexham Holdings Pty Limited.

Once again, the purchase was notifiable due to "a power to exercise, or control the exercise of, a right to vote shares in securities" registered in these names.

Brickworks Limited (ASX: BKW)

Interestingly enough, Robert Millner is also a director at Brickworks Limited. His colleague there, the managing director and executive director, Lindsay Partridge, also made a declaration to the ASX last week.

Partridge reported he had increased his indirect interests in Brickworks in a number of ways.

One of them was purchasing 33,182 shares on market on 26 September. The purchase was made through CPU Share Plans Pty Ltd under the Brickworks deferred STI (short-term incentive) scheme.

Eagers Automotive Ltd (ASX: APE)

Eagers Automotive director Nicholas Politis AM has been buying more shares in his company for many months.

In September, Politis spent a tad over $230,000 buying 20,000 new Eagers shares. He's made further purchases this month totalling just under $565,000. According to the latest disclosure, he now holds more than 70.55 million shares.

As we previously reported, in July Politis spent $1.5 million buying Eagers shares. By the end of that month, he held more than 70.33 million shares.

He bought another 100,000 Eagers shares in August.

Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

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 young man pointing up looking amazed, indicating a surging share price movement for an ASX company
Broker Notes

These ASX 200 shares could rise 20% to almost 30%

Analysts are tipping these shares to deliver big returns over the next 12 months.

Read more »

A young woman carefully adds a rock to the top of a pile of balanced river rocks.
Share Market News

Here's how the ASX 200 market sectors stacked up last week

Energy and utilities stocks led the way last week with 4%-plus gains.

Read more »

Animation of a man measuring a percentage sign, symbolising rising interest rates.
Share Market News

Here's when Westpac says the RBA will now cut interest rates

Will borrowers need to wait until the middle of next year for relief? Let's find out.

Read more »

Boys making faces and flexing.
Opinions

3 ASX 300 shares to buy and hold for the long run

I believe these stocks have loads of growth potential.

Read more »

Young girl drinking milk showing off muscles.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a great end to the trading week for ASX investors today.

Read more »

Hands reaching high for a trophy with a sunset in the background.
Record Highs

The ASX 200 Index is on its way to another all-time high today. Here's why

These blue chip stocks are driving the index towards a new record today...

Read more »

Group of friends trading stocks on their phones. symbolising the 3 most traded ASX 200 shares today
Share Market News

3 ASX mining stocks topping the most-traded list in October

Chinese stimulus news and company announcements likely contributed to the higher trading activity.

Read more »