Our Insider & Shareholders’ Transactions Monthly aims to understand the ‘actual’ sentiment of insiders (such as company directors and officers) and major shareholders (such as founders with significant holdings), towards a Company by analysing their transaction data, tracking and dissecting actual purchases and divestment of stock by these key stakeholders.
In this report, we neatly reproduce tables representing a subset of the total data collected from our proprietary investment architecture which comprises our proprietary real time and automated quantitative screen. The appendix section details our methodology and definitions of data collected.
Notable Insider Transactions during the past month…
(1) Myers Holdings (MYR) – overall 5.00% of outstanding shares were purchased by one insider in the past month;
(2) Appen Ltd (APX) – overall 1.28% of outstanding shares were sold by one insider in the past month.
Notable Insider Transactions in the year…
(1) Hub24 Ltd (Hub) – overall 7.86% of outstanding shares were purchased by five insiders in the past year.
(2) Whitehaven Coal (WHC) – 11.92% of outstanding shares were sold by three insiders.
(3) Reliance Worldwide (RWC) – 5.33% of outstanding shares were sold by one insider.
(4) Oil Search Ltd (OSH) – 4.52% of outstanding shares were sold by one insider.
Our Methodology – Our framework is threefold:
(1) Dataset: Banyantree utilises its own proprietary investment architecture. Part of that investment architecture is a proprietary real time and automated quantitative screen which tracks more than one million data points on global macroeconomic indicators and fundamentals data on equities (and other investment classes).
With our proprietary investment architecture, we examine the ASX All Ordinaries Index, which is made up of the largest 500 companies as measured by market capitalisation that are listed on the Australian Stock Exchange. We track data to discern transaction activity conducted by insiders and shareholders’ (such as company directors, officers, major shareholders.
These datapoints include: (i) what company is being transacted on, (ii) the number of insiders who are transacting; (iii) the size of the purchases or divestment of stock; (iv) the volume that those shares make-up of the Company’s shares outstanding; and (v) the average price of the transaction. Please note that we have excluded data on transactions relating to the exercise of stock options awarded to insiders as part of their remuneration packages.
(2) Analysis: In essence, this data helps us understand the “actual” sentiment of insiders (company directors and officers) and major shareholders such as founders, on a Company’s current and future prospects. We are focused on: (i) transactions which took place across 1-month, 3-months, 6-months and 1 year. This allows us to discern buying or selling patterns. (ii) transactions which are significant in size. (iii) the average transaction price relative to current stock price. In our view, this measures how well insiders and shareholders have fared since the transaction took place. That is, have they benefitted – profit or loss had the transaction not taken place.
(3) Call to Further Due Diligence: We mirrored the transaction data with what the Company’s valuation metrics currently are. This may signal that further due diligence is required on an individual stock basis.
Insider & Shareholders’ Transactions Monthly – Key Observations
Notable Transactions:
– Myers Holdings (MYR) – overall 5.00% of outstanding shares were purchased by one insider in the past month.
– Appen Ltd (APX) – overall 1.28% of outstanding shares were sold by one insider in the past month.
– Hub24 Ltd (Hub) – overall 7.86% of outstanding shares were purchased by five insiders in the past year.
– Whitehaven Coal (WHC) – 11.92% of outstanding shares were sold by three insiders.
– Reliance Worldwide (RWC) – 5.33% of outstanding shares were sold by one insider.
– Oil Search Ltd (OSH) – 4.52% of outstanding shares were sold by one insider.
This is only a snippet of the full report sent to BanyanTree Investment Group clients on 28 July 2021.
Find out more about BanyanTree Investment Group, their research, and portfolios by clicking here.
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