A look at insider buying among ASX 200 big four bank shares

Have insiders been buying or selling? We take a look

Mitchell Lawler

Mitchell stumbled upon the concept of investing when in high school, devotedly urging his parents to put some money into a handful of technology companies with increasingly popular products among his demographic – many of which have gone on to great success. It wouldn’t be until 2017, some five years later, that Mitchell became an investor of his own money. Having studied and worked as a mechanical engineer in the building services industry, Mitchell takes a methodical and analytical approach to evaluating businesses. Rather than relying purely on numbers, Mitchell drills beyond a company’s metaphorical mantle to unearth obscure patterns or competitive advantages that would go otherwise unnoticed. His expertise resides within areas such as software, consumer goods, and building services equipment. However, his quest to find quality companies that set the industry standard and flex some degree of an impenetrable position has no limits – small cap to mega cap, cosmetics to healthcare – if it’s an exceptional business it’s on his radar.

Published September 10, 2021 3:54 pm AEST

From time to time, it can be worthwhile reviewing insider transactions. This time we pop the hood on the big four bank shares of the ASX 200 to see whether insiders have been buying or selling.

The past month has been mixed for the share prices of Australia's big four banks. However, sometimes the broader market can be mispricing a company in comparison to its fundamentals.

An indication of this can be the sentiment insiders have towards the share price. After all, these are the people that get to see all the inner workings of the business day-in and day-out.

On that note, let's see what transactions have been taking place inside the ASX 200 big four banks.

Man holding phone in front of stocks graphic — Image source: Getty Images

Are insiders buying up ASX 200 bank shares?

Australia and New Zealand Banking Grp Ltd (ASX: ANZ)

Starting off with the least eventful of the bunch, there have been no insiders buying or selling ANZ shares in the last month. This is despite a 4.6% fall in its share price during the 30-day period. In fact, the big four banking constituent has not released any pertinent announcements in the last month either.

The last insider transaction that occurred in ANZ shares was on 1 June 2021. On this day, chief information officer Michael Bullock sold $384,722 worth of shares.

National Australia Bank Ltd (ASX: NAB)

Next on the list, is the third biggest bank share on the ASX 200, NAB — or should we say 'JAB' today, in keeping with its temporary renaming? The NAB share price has fared well over the past month, rising around 5%.

It appears brokers and insiders are on the same page for this one. According to a recent note, Goldman Sachs has a buy rating on the bank with a $30.62 price target. Meanwhile,

NAB non-executive director Kathryn Fagg has also been bullish. On 17 August 2021, the non-exec bought $19,972 worth of shares via an on-market purchase.

Westpac Banking Corp (ASX: WBC)

From buying to selling — one Westpac insider has recently cashed out a large chunk of shares in this ASX 200 bank. However, this time it is contrarian to some analysts' perspectives. According to the team at Citi, the outlook for Westpac is improving with strong economic growth ahead. As a result, the broker holds a buy rating on the bank share with a $30.00 price target.

Regardless, non-executive director Margie Seale sold $321,440 worth of Westpac shares on 1 September 2021. According to the notice, Seale still retains approximately $268,150 worth of shares at the current price.

Commonwealth Bank of Australia (ASX: CBA)

Last but not least, the biggest of the ASX 200 big four bank shares, Commonwealth Bank of Australia. Unfortunately for shareholders, it has experienced the worst month of the bunch. Shares in the $179 billion behemoth have fallen more than 6% in the past 30 days. However, you wouldn't think it looking at the insider transactions during the period.

Precisely four non-executive directors bought shares in CBA on 18 August 2021. Those involved included Genevieve Bell, Anne Templeman-Jones, Robert Whitfield, and Mary Padbury. Collectively, the four purchased a total of $82,119 worth of shares.

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