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)
According to a change of interests of substantial holder notice, AustralianSuper has been increasing its stake in this auto parts retailer again.
The notice reveals that the super fund has added approximately 3.5 million shares to its holding over the last three months. As a result, AustralianSuper now owns a total of 27,645,723 Bapcor shares, which is the equivalent of an 8.15% stake.
AustralianSuper was purchasing shares as recently as 25 August when it picked up 279,699 shares at an average of $7.48 per share. This is higher than the latest Bapcor share price of $7.23, giving investors an opportunity to buy in at a cheaper price than what AustralianSuper paid.
The team at Macquarie certainly see this share price weakness as a buying opportunity. Last week the broker put an outperform rating and $8.55 price target on Bapcor’s shares.
Hipages Group Holdings Ltd (ASX: HPG)
Another change of interests of substantial holder notice reveals that Challenger Ltd (ASX: CGF) has been buying more of this online tradie marketplace provider’s shares.
According to the notice, Challenger has picked up ~1.3 million shares over the last few months. This has brought its holding to a total of 7,909,443 shares, which equates to a 6.08% stake.
The fund manager’s last purchase came on 31 August when it paid $155,375 for 42,649 shares. This represents an average of $3.64 per share, which is broadly in line with where the Hipages share price trades today.
The good news for Challenger is that the team at Goldman Sachs see plenty of upside from here. They recently retained their buy rating and lifted their price target on Hipages’ shares to $4.35.