Insider Selling – What does it mean for these stocks?
1 Ramsay Healthcare (RHC) $65.05
Private hospital operator RHC has enjoyed a reasonable recovery from its 2018 lows with last months result taking the stock over 10% higher. Last week director Bruce Soden sold over $3m worth of stock at $63.72, the highest price in around 10-months at the time.
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Ramsay Healthcare (RHC) Chart
2 Orora Ltd (ORA) $3.07
Two directors of packaging business Orora (ORA) have sold shares over last 10-days for a total of $2.5m – the Chairman and MD/ CEO.
Considering we have a technical sell set-up targeting another 10% downside and the packaging industry is struggling as a group at the moment we take this as confirmation to leave the stock alone.
Orora Ltd (ORA) Chart
3 Credit Corp (CCP) $22.39
Collection and credit management business CCP is within a good month of making fresh all-time highs as the business continues to operate strongly, albeit with some significant share price volatility along the way.
The companies Chairman has sold just under $700k worth of stock this month but it follows his pattern in 2018 and the shares have had an impressive 12-months hence we see nothing sinister in this selling.
Credit Corp (CCP) Chart
4 Insurance Australia Group (IAG) $7.81
Insurance company IAG is a business MM has been considering buying over recent weeks, potentially as a switch with our QBE Insurance (QBE) holding. So far this month the MD / CEO has sold over $1.8m worth of stock between IAG Finance (NZ) and IAG shares in Australia while an independent director bought a relatively small $100k holding in November.
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Insurance Australia Group (IAG) Chart
5 Bravura Solutions (BVS) $5.46
BVS provides wealth management software to the big end of town in the financial sector and its offering has clearly been a big hit with the industry as can be seen from its share price appreciation. However, so far since February 3 directors have sold stock for a total ~$4.3m, this willingness by the board to lock in some money above $5 concerns me, especially for a business with a high P/E of 36x.
Technically we would be sellers into fresh highs above $5.70 but remember it’s a statistically dangerous game selling fresh all-time highs.
Bravura Solutions (BVS) Chart
Market Matters Take/Outlook
