I like to keep an eye on substantial shareholder notices. This is because these notices give you an idea of which shares large investors, asset managers, and investment funds are buying or selling.
Two notices that have caught my eye today are summarised below. Here’s what these fund managers have been buying:
Bravura Solutions Ltd (ASX: BVS)
According to a change of interests of substantial holder notice, Mawer Investment Management has been taking advantage of weakness in the Bravura share price to top up its position.
The release confirms that Mawer has added approximately 4.5 million more shares to its holding since its last update at the end of November.
This means the fund manager now owns just under 25.5 million Bravura shares, which represents a 10.31% stake in the company.
With the Bravura share price currently trading 51% lower than its 52-week high, it appears as though this fund manager believes its shares are in the bargain bin. Bravura’s shares have been sold off in recent months due to its disappointing guidance for FY 2021. Its performance has been impacted by Brexit and COVID headwinds.
Domino’s Pizza Enterprises Ltd (ASX: DMP)
Another change of interests of substantial holder notice reveals that Pinnacle Investment Management Group Ltd (ASX: PNI) has been buying this pizza chain operator’s shares.
According to the notice, over the last few months Pinnacle has increased its holding in Domino’s by ~900,000 shares to a total of just under 7.3 million. This represents an interest of 8.43%.
Pinnacle’s most recent purchases came on 4 January when it picked up 37,453 shares for a total consideration of $3,296,643. This equates to an average of $88.02 per share.
So, with the Domino’s share price trading at $82.72 a little over one week later, investors could be buying shares at a 6% discount to what the fund manager paid.
One broker that thinks Domino’s shares are in the buy zone is Bell Potter. This week it put a buy rating and $99.30 price target on its shares.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Bravura Solutions Ltd. The Motley Fool Australia has recommended Domino's Pizza Enterprises Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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