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.

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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.

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