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 are summarised below. Here’s what these fund managers have been buying:
Cleanaway Waste Management Ltd (ASX: CWY)
According to an initial substantial holder notice, Challenger Ltd (ASX: CGF) has been building a position in this waste management company in 2021.
The notice reveals that Challenger has been buying shares since 19 January and recently took its holding to 105,183,013 shares on 19 May. This is the equivalent of a 5.11% stake in Cleanaway.
Given that its buy price on 19 May was broadly in line with where the Cleanaway share price trades today, its analysts appear to still see a lot of value at current levels.
One broker that might agree is Macquarie Group Ltd (ASX: MQG). Its analysts currently have an outperform rating and $3.00 price target on the company’s shares. This compares to the latest Cleanaway share price of $2.77.
EML Payments Ltd (ASX: EML)
A notice of change of interests of substantial holder reveals that Commonwealth Bank of Australia (ASX: CBA) has been taking advantage of recent weakness in the EML Payments share price to increase its position.
The release shows that Commonwealth Bank (via its subsidiaries) picked up approximately 4.3 million shares over the last couple of weeks. This has increased its stake to 26,374,609 shares, which equates to a 7.3% interest. This is up from 6.1% previously.
The EML Payments share price has lost a third of its value since 15 May due to concerns over its European operations. Judging by its purchases, Commonwealth Bank appears to see this as a buying opportunity.
Analysts at UBS would agree. Last week they reaffirmed their buy rating but trimmed their price target to $5.30. The EML Payments share price ended the week at $3.42.