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 this fund manager has been buying:
Bapcor Ltd (ASX: BAP)
A change of interests of substantial holder notice reveals that AustralianSuper has been increasing its stake in this auto parts retailer.
According to the notice, the super fund has added approximately 3.5 million shares to its holding over the last three months. This means that AustralianSuper now owns a total of 24,130,659 Bapcor shares, which is the equivalent of a 7.11% interest.
AustralianSuper was purchasing shares as recently as 22 June when it picked up 277,207 shares at an average of $8.31 per share. This is broadly in line with the latest Bapcor share price of $8.34.
Analysts at Citi would be supportive of these purchases. The broker currently has a buy rating and $9.50 price target on its shares.
Reject Shop Ltd (ASX: TRS)
Another change of interests of substantial holder notice reveals that WAM Capital Limited (ASX: WAM) has taken advantage of recent weakness in the Reject Shop share price to top up its position.
The notice shows that WAM picked up ~450,000 Reject Shop shares since February, lifting its holding to 3,456,359 shares. This represents a 9.03% stake, up from 7.87% previously. WAM was buying shares as recently as Monday when the Reject Shop share price dropped to a 52-week low. Judging by its purchases, WAM’s analysts appear to believe its shares have been oversold.
Morgan Stanley certainly believes this is the case. Last week the broker put an overweight rating and lofty $10.00 price target on its shares. This compares to the latest Reject Shop share price of $5.37.