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:
Domino’s Pizza Enterprises Ltd (ASX: DMP)
A change of interests of substantial holder notice reveals that Bennelong Funds Management has recently been increasing its stake in this pizza chain operator.
According to the notice, Bennelong Funds Management has added a further 1,094,865 shares to its holding, lifting its interest to a total of 5,811,725 shares. This represents a ~6.72% interest, up from ~5.42% previously. The fund manager was buying shares for as low as $87.88 and as high as $112.94. This compares to the latest Domino’s share price of $116.32.
Analysts at Bell Potter are likely to give the thumbs up to these purchases. The broker currently has a buy rating and $122.00 price target on the company’s shares.
Qantas Airways Limited (ASX: QAN)
According to an initial substantial holder notice, First Sentier has been building a position in this airline operator since February.
The notice reveals that the fund manager, previously known as Colonial First State, has now accrued a total of 94,334,101 Qantas shares. This is the equivalent of a 5% stake in the airline. First Sentier was buying shares as recently as Monday when the Qantas share price closed the day at $4.71.
One leading broker that would be supportive of these purchases is Citi. On Monday the broker retained its buy rating but trimmed its price target slightly to $5.89. Based on the current Qantas share price, this implies potential upside of approximately 21% over the next 12 months.