Guess which ASX All Ords company founder just bought up 127,000 new shares in their company

It’s always ASX news when a founder of an All Ordinaries Index (ASX: XAO) share buys up stock of their own company. For one, All Ords investors love to know these kinds of things. When a founder buys shares in the company they started and run, it is an implicit vote of confidence in the company’s future.

Investors appreciate when the people running the companies they own have skin in the game. Increasing said skin improves the alignment of shareholders with management. When investors feel that their own financial fortunes rise and fall alongside the people in charge, it’s simply good for morale.

So let’s talk about Humm Group Ltd (ASX: HUM). Because we just got some news from Humm along these lines.

Humm is of course one of the All Ords’ remaining buy now, pay later (BNPL) shares. It’s also one of the oldest BNPL shares on the share market, even predating the old BNPL pioneer Afterpay, which is now part of Block Inc (ASX: SQ2).

Like most All Ords BNPL shares that remain on the ASX, 2022 has been a very rough year for Humm. Since the start of the year, Humm shares have gone from 92 cents each to the 56 cents we see today. That’s a drop worth a nasty 39.7%.

Since Humm’s last all-time high, which saw the company approach $2.50 a share, back in 2019, Humm shares are now down around 78%, as you can see below:

So shareholders could really use some good news right about now. Well, they might just have it.

Humm directors are buying up shares hand over fist

According to an ASX filing this morning, Andrew Abercrombie has just picked up 127,685 new shares in Humm in an on-market purchase. This purchase, which occurred on 8 December, cost Abercrombie close to $70,000 and takes his total holdings in Humm Group to just over 118 million shares.

Abercrombie is a founding director of Humm, and today serves as the company’s chair. He has been involved with Humm since its founding in 1991.

This isn’t the only purchase he has made of Humm shares in recent times either. Abercrombie also picked up an additional 101,352 shares on 7 December – a parcel worth just over $55,000. Another director, Robert Hines, picked up 100,000 shares of his own on 21 November last month.

So Humm’s directors seem to think that their own company’s shares are too cheap to ignore at the current price. No doubt Humm investors will be delighted with this news. Perhaps this is why the Humm share price has risen a healthy 1.83% so far this Monday to 56 cents a share.

 

The post Guess which ASX All Ords company founder just bought up 127,000 new shares in their company appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen 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 Block. The Motley Fool Australia has positions in and has recommended Block. The Motley Fool Australia has recommended Humm Group. 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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