Guess which ASX 200 share this billionaire has been topping up on

Investors are bidding up Eagers Automotive shares after one director decided to increase his holding.

| More on:
a child in a billy cart style car holds a hand in the air as he drives ahead on an open road.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • Eagers Automotive shares travel 0.68% higher to $11.76 during mid-afternoon trade
  • Non-executive director Nick Politis made another sizeable purchase of the company's shares
  • This now gives Politis a total holding of roughly 70.26 million shares, or 27.3% of Eagers Automotive

Shares in Eagers Automotive Ltd (ASX: APE) are edging higher on Tuesday following another top-up by a board member.

At the time of writing, the automotive retailer's shares are fetching at $11.76, up 0.68%.

In comparison, the S&P/ASX 200 Index (ASX: XJO) is heading south by 0.65% to 6,643 points following losses on Wall Street overnight.

Let's take a look at the details surrounding the latest insider buying action.

Eagers Automotive' Politis continues to buy up

According to the Australian Financial Review, non-executive director Nick Politis has made a series of on-market purchases in Eagers Automotive.

This comes as the company received approval to take over the rich lister's privately-owned dealerships in the Australian Capital Territory. The agreed acquisition price was $193 million which is relatively modest given Politis' estimated weath is $2.02 billion.

In the past month, Politis has picked up 50,000 Eagers Automotive shares between $10.733 and most recently $11.336 apiece.

This puts him as the largest shareholder of the company, with a total holding of roughly 70.26 million shares.

To put that into perspective, that equates to around a 27.3% holding in Eagers Automotive.

Since mid-June and the timely buy from Politis, the automotive retailer's shares have rebounded strongly by 33%.

The company has hundreds of dealerships across Australia and New Zealand, selling a number of popular vehicle brands.

Acquiring the dealerships in the ACT will generate $450 million in sales per year for the business. These include four Toyota dealerships as well as Lexus of Canberra, Subaru Canberra, Volvo Car Canberra, and Phillip Mitsubishi.

Eagers Automotive share price snapshot

Despite today's gain, the Eagers Automotive share price has fallen around 22% in the past 12 months.

Year to date, the company's shares are down 12%.

Based on today's price, Eagers Automotive commands a market capitalisation of approximately $3 billion.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

Unsure man analysing data on laptop.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a rough start to the trading week for investors.

Read more »

Three happy office workers cheer as they read about good financial news on a laptop.
Broker Notes

Leading brokers name 3 ASX shares to buy today

Here's why brokers believe that now could be the time to snap up these shares.

Read more »

An excited man stretches his arms out above his head as he reaches a mountain peak representing two ASX 200 shares reaching multi-year high prices today
52-Week Highs

These ASX 200 shares just hit new 52-week highs

These stocks are defying the broader market this session.

Read more »

Man trying to balance and walk on a rope attached to a cliff's edge.
Share Market News

Australian companies that thrive in economic downturns

The strength of a balance sheet is imperative during downturns.

Read more »

A businesswoman gets angry, shaking her fist at her computer.
Share Market News

This $5.6 billion ASX 200 stock just hit a 13-year low following its earnings update

This blue chip is sinking to new lows on Monday. What's going on?

Read more »

Overjoyed man celebrating success with yes gesture after getting some good news on mobile.
Share Gainers

Why A2 Milk, Audinate, BlueScope, and Chalice Mining shares are rocketing today

These shares are starting the week with an almighty bang. But why?

Read more »

a man weraing a suit sits nervously at his laptop computer biting into his clenched hand with nerves, and perhaps fear.
Share Market News

Why AMP, Bendigo Bank, Pantoro, and Westpac shares are sinking today

These shares are starting the week in the red. But why?

Read more »

A hand moves a building block from green arrow to red, indicating negative interest rates
Share Market News

Will ASX 200 investors get the RBA interest rate cut they're expecting tomorrow?

The RBA announces its next interest rate decision tomorrow. So, what should we expect?

Read more »