Directors are continuing to buy up this decimated ASX tech share

Investing great Peter Lynch is widely quoted as saying, “insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise”. That’s likely welcome insight for fans of ASX tech share Bravura Solutions Ltd (ASX: BVS) after two directors snapped up additional stock following its recent downturn.

Bravura’s stock plummeted 52% on news the provider of wealth management and funds administration software faces a reconfiguration earlier this month. The technology company told the market:

[W]hilst Bravura has solid foundations, the business will be required to be reconfigured to scale our products across customers.

The pace of change from a traditional services model to a more scalable technology solutions provider will accelerate but requires a realignment of the organisation and resources to create greater product discipline.

The tumble saw the Bravura share price hit an all-time low of 54 cents. Though, it’s since posted a slight recovery. It closed Thursday’s session at 70 cents – still a far cry from its 52-week high of $2.77.

But directors are apparently confident in the company’s future. Let’s take a look at the latest insider buying going down at the embattled ASX tech share.

Insiders continue buying decimated ASX tech share

The Bravura share price has suffered a major nosedive this month, and some of the tech company’s directors are buying the dip.

Two insiders at the ASX tech stock have bolstered their holding in recent weeks. They’ve indirectly bought a combined total of 777,000 shares on-market.  

Bravura chair Neil Broekhuizen was the first to take advantage of the downturn. He indirectly bought 636,000 Bravura shares, paying just 62.53 cents apiece on 4 November, as my colleague Sebastian reports.

The whole parcel cost Broekhuizen just under $400,000. That same holding would have been worth over $775,000 at the end of October.

Now, director Alexa Henderson has joined in on the insider buying.

An ASX release states her hold was indirectly bolstered by 141,000 Bravura shares via her spouse’s superannuation fund on Monday.

Each stock was purchased for 70.72 cents – leaving the parcel with a value of nearly $100,000. That’s a $72,000 discount on what the holding would have cost as of the final close of last month.

Henderson now directly holds 10,000 shares in the ASX tech stock and indirectly boasts another 201,975 shares.

The post Directors are continuing to buy up this decimated ASX tech share appeared first on The Motley Fool Australia.

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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 positions in and has recommended Bravura Solutions Ltd. The Motley Fool Australia has positions in and has recommended Bravura Solutions Ltd. 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://www.fool.com.au/2022/11/11/directors-are-continuing-to-buy-up-this-decimated-asx-tech-share/