The Zip Co Ltd (ASX: Z1P) share price is pushing higher on Tuesday despite revealing a large number of insider sales.

At the time of writing the buy now pay later provider’s shares are up 0.5% to $6.03.

Who has been selling Zip Co shares?

This morning Zip Co advised that a number of directors have sold shares this month.

This includes Managing Director Larry Diamond, Chairman Philip Crutchfield, and Company Secretary David Franks.

According to one change of director’s interest notice, Mr Diamond offloaded a total of ~5.5 million through a series of on-market trades between 18 June and 19 June. The managing director received an average of $6.125 per share, which equates to a total consideration of ~$33.7 million.

Another notice reveals that Mr Crutchfield sold 1 million shares through a series of on-market trades between 18 June and 22 June. The chairman received an average of ~$6.11 or a total consideration of $6.11 million.

Finally, the third notice shows that Mr Franks has offloaded 1.3 million shares through on-market trades on 18 June and 19 June. The company secretary received an average of $6.12 per share, which equates to a total consideration of just under $8 million.

Why have they been selling shares?

In response to the sales, Zip Co released an announcement which explains why the sales were made.

According to the release, the directors sold these shares to pay personal and/or related party tax obligations, reduce personal and/or related party debt commitments, and to allow them to diversify a minor part of their total investment in Zip Co.

It is worth noting that these directors are still heavily invested in the company, which I believe means their interests remain firmly aligned with shareholders.

In fact, although these were sizeable sales, in aggregate, the directors sold less than 10% of their holdings in the company. Furthermore, all three directors have confirmed that they have no present intention to sell any further shares in the medium term.

More reading

• Is the Afterpay share price a boom or a bubble?
• ASX share price winners and losers of last week
• Which shares to buy if the ASX tumbles
• Grow your wealth with these 3 ASX fintech shares
• Millennials be warned! Signs of dangerous ASX share trading grow

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 ZIPCOLTD FPO. The Motley Fool Australia has no position in any of the stocks mentioned. 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.

The post Zip Co share price higher despite insiders selling almost $48 million shares appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2Yp6DBv

One leading broker believes that the majority of the big four banks could be in the buy zone right now.

What did Morgans say?

According to a note out of Morgans, with the exception of Commonwealth Bank of Australia (ASX: CBA), its analysts feel the bad debt damage being factored into current major bank share prices is overdone.

Morgans explained: “Across the sector, at this stage we continue to be of the view that the bad debt experience during the current crisis will not be as severe as that experienced during the GFC, largely as this time we are seeing the Australian government and central bank provide cushioning to bank and private sector balance sheets to an extent never seen before.”

Westpac Banking Corp (ASX: WBC) remains the broker’s top pick in the sector. This is largely on the belief that it feels Westpac is the only major bank where “the bad debt damage being priced in is greater than that experienced during the GFC.” It appears to believe this is excessive.

What about their net interest margins?

In addition to this, the broker isn’t overly concerned about the big banks’ net interest margin (NIM) outlook.

Although Morgans expects the low interest rate environment to continue to be a NIM headwind, there are a number of tailwinds which it expects to largely offset this.

These include a reduction in basis risk with swap-OIS spreads now in negative territory, the RBA’s Term Funding Facility (TFF), improvement in institutional lending margins, home loan standard variable rates not being reduced after the last cash rate cut, and strong growth in transaction deposits.

Will they pay dividends?

Morgans doesn’t expect Australia and New Zealand Banking GrpLtd (ASX: ANZ) and Westpac to pay interim dividends, even on a deferred basis.

It does, however, expect dividends from them all, including National Australia Bank Ltd (ASX: NAB), in November.

“With the staged easing of lockdown restrictions currently being experienced in Australia and signs of a plateauing in loan repayment deferrals, we expect ANZ, NAB and WBC to declare final dividends in November and we see the possibility of CBA declaring a deferred final dividend in November,” the broker added.

Morgans has add (buy) ratings on ANZ, NAB, and Westpac, but a hold rating on Commonwealth Bank.

More reading

• Is the Afterpay share price a boom or a bubble?
• ASIC hits Commonwealth Bank with civil proceedings
• 5 things to watch on the ASX 200 on Tuesday
• 3 quality ASX dividend shares you can buy today
• Why Morgans is urging investors to buy ASX big bank stocks today

Motley Fool contributor James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia has no position in any of the stocks mentioned. 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.

The post Should you buy ANZ, CBA, NAB, or Westpac? Here’s what this broker thinks appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2YY14cn