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

A young man sits on the floor with his back against a sofa hunched over his phone in one hand and his other hand on top of his head as though he is seeing bad news as his face looks sad and anguished.
Share Market News

Here are the top 10 ASX 200 shares today

ASX investors copped yet another bruising in the markets today.

Read more »

Four young friends on a road trip smile and laugh as they sit on roof of their car.
Broker Notes

4 ASX 200 shares receiving broker upgrades

These high-performing ASX 200 shares have caught the attention of brokers and investors this week.

Read more »

A susccesful person kicks back and relaxes on a comfy chair
Opinions

Which ASX stock I'd rather buy than Nvidia at $1,148 per share

I'm being cautious not to get sucked into the AI euphoria. Here's my money-making alternative to tech's kingpin.

Read more »

A young woman holding her phone smiles broadly and looks excited, after receiving good news.
Share Gainers

Why Catapult, Clarity, Pro Medicus, and Qantas shares are rising today

These shares are avoiding the market weakness on Thursday and pushing higher. But why?

Read more »

Man pointing at a blue rising share price graph.
Share Gainers

Guess which ASX microcap stock just rocketed 109% on a new deal!

Investors are sending the ASX microcap stock soaring on Thursday. But why?

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why BHP, GR Engineering, Novonix, and Pointerra shares are dropping today

These shares are dropping into the red on Thursday. But why?

Read more »

Rede arrow on a stock market chart going down.
Share Market News

Why did the ASX 200 just hit a 4-week low?

The ASX 200's sudden four-week low might come down to just one thing.

Read more »

a man wearing old fashioned aviator cap and goggles emerges from the top of a cannon pointed towards the sky. He is holding a phone and taking a selfie.
Share Gainers

3 ASX All Ords shares smashing new multi-year highs while the market sinks

Investors are sending these 3 ASX All Ords shares to multi-year highs on Thursday. But why?

Read more »