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 today are summarised below. Here’s what these fund managers have been buying:
Altium Limited (ASX: ALU)
A notice of change of interests of substantial holder shows that Pinnacle Investment Management Group Ltd (ASX: PNI) has taken advantage of recent weakness in the Altium share price to increase its holding. According to the notice, Pinnacle and its subsidiaries have lifted their holding by 1.3 million shares throughout June and July to a total of 8,263,904 shares. This represents a 6.21% stake in the electronic design software company.
The Altium share price is currently down 20% from its 52-week high, at a time when many of its industry peers are hitting record highs. Investors have been selling Altium’s shares after the pandemic weighed heavily on its performance in FY 2020. Judging by its purchases, Pinnacle appears confident this is just a short term headwind and that its long term outlook remains as positive as ever.
Costa Group Holdings Ltd (ASX: CGC)
A notice of initial substantial holder reveals that AMP Limited (ASX: AMP) has become a major shareholder of this horticulture company. According to the notice, the financial services company has been building a position in Costa over the last few months. This leaves AMP with a total of 20,387,887 shares, which is the equivalent of a 5.09% stake in the company.
With Costa’s shares down 30% from their 52-week high, it appears as though AMP sees a lot of value in them at the current level. One broker that would agree is Citi. Earlier this month it put a buy rating and $3.40 price target on Costa’s shares. This compares to the current Costa share price of $2.96.
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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 Altium. The Motley Fool Australia owns shares of and has recommended COSTA GRP FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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