Insider buying is often heralded as a signal that those at a company’s helm are confident of its potential growth. And this All Ordinaries Index (ASX: XAO) share has been subject to yet more insider buying.
Humm Group Ltd (ASX: HUM)’s largest shareholder Andrew Abercrombie – who also happens to be its founder and chair – has upped his stake in the diversified financial provider once more.
He now holds approximately 23.6% of the ASX All Ords company’s outstanding shares, according to ASX data. The Humm share price is currently trading at 47 cents, leaving his parcel valued at around $55 million.
Let’s take a closer look at the latest round of insider buying of the company’s shares.
ASX All Ords share sees more insider buying
Abercrombie has been at it again, indirectly forking out $1.6 million on Humm shares.
His buying comes just months after he was reinstated as the company’s chair after the entirety of its board, aside from Abercrombie, walked out.
Their exit came in the wake of an Abercrombie-led campaign against a $335 million acquisition offer for the company’s consumer finance leg – containing its BNPL business.
The part-cash, part-scrip bid came from Latitude Group Holdings Ltd (ASX: LFS). Both an independent expert and the majority of the company’s board concluded the offer was in shareholders’ best interests in May.
Abercrombie was the only director to disagree. He soon upped his stake in a vocal effort to halt the transition.
A release to the ASX following the acquisition’s failure, authorised by the majority of the company’s directors, read:
The events leading to the termination of the proposed sale … have caused the majority directors of [Humm] to conclude that they cannot remain on the board … with Andrew Abercrombie.
The now-chair snapped up around 3.3 million additional shares in the ASX All Ords company last week.
Of those, around 2.1 million of the All Ords company’s shares were snapped up by Abercrombie’s trust. Another parcel of approximately 1.2 million shares was bought by the Abercrombie Superannuation Fund.
That leaves the director holding 118 million Humm shares. The company currently has 500 million shares outstanding, according to the ASX.
The post Guess which ASX All Ords director just bought $1.6m of their company’s shares appeared first on The Motley Fool Australia.
.
More reading
- How bad was the first quarter for the Woodside share price?
- 3 ASX dividend shares proving they can handle inflation
- Why is the Block share price in free fall today?
- Core Lithium share price lower despite big news
- Why did the Dubber share price just crash 35%?
Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Humm Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
from The Motley Fool Australia https://ift.tt/w5bh2dW
Leave a Reply