It's commonly understood in the investing world that when directors spend their own money buying more shares in the ASX companies they run, it's usually a good sign.
No one knows a business like the company directors that are calling the shots. And just like us regular ASX investors, they also want to put their money to best use for long-term wealth generation.
Directors can buy more shares directly, in their own names, using personal cash savings. They can also buy through other vehicles such as super funds and family trusts.
Sometimes they raise their 'indirect interests' in company shares when entities they are involved with purchase more stock. Either way, these are all publicly notifiable trades to the ASX.
Regardless of the type of investment, an ASX 200 director increasing their personal financial ties to shares in the companies they run should indicate confidence in the stock. Arguably, it's pretty much always a good sign.
So, let's look at who raised their direct or indirect interests in their own ASX 200 companies last month.
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Which ASX 200 directors have been raising their stakes?
Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)
On 30 September, Soul Patts chair and non-executive director Robert Millner told the ASX he had increased his indirect interests in the company with the purchase of 170,000 shares on market.
The cost was more than $4.5 million and the trades took place between 23 and 28 September.
On the same day, his son and fellow non-executive director Thomas Millner made the same declaration.
In both cases, the shares were purchased through three family entities — J S Millner Holdings Pty Limited, T G Millner Holdings Pty Limited, and Mary Millner Holdings Pty Limited.
The purchase was a "notifiable interest because of a power to exercise, or control the exercise of, a right to vote shares in securities" registered in these names.
Both men are also directors of New Hope Corporation and just raised their indirect interests there, too.
New Hope Corporation Limited (ASX: NHC)
Robert Millner and Thomas Millner declared the purchase of 300,000 New Hope shares last week.
The shares were purchased for about $1.86 million through a series of trades on 28 September.
The shares were purchased through three entities — T.G. Millner Holdings Pty Limited, J. S. Millner Holdings Pty Limited, and Hexham Holdings Pty Limited.
Once again, the purchase was notifiable due to "a power to exercise, or control the exercise of, a right to vote shares in securities" registered in these names.
Brickworks Limited (ASX: BKW)
Interestingly enough, Robert Millner is also a director at Brickworks Limited. His colleague there, the managing director and executive director, Lindsay Partridge, also made a declaration to the ASX last week.
Partridge reported he had increased his indirect interests in Brickworks in a number of ways.
One of them was purchasing 33,182 shares on market on 26 September. The purchase was made through CPU Share Plans Pty Ltd under the Brickworks deferred STI (short-term incentive) scheme.
Eagers Automotive Ltd (ASX: APE)
Eagers Automotive director Nicholas Politis AM has been buying more shares in his company for many months.
In September, Politis spent a tad over $230,000 buying 20,000 new Eagers shares. He's made further purchases this month totalling just under $565,000. According to the latest disclosure, he now holds more than 70.55 million shares.
As we previously reported, in July Politis spent $1.5 million buying Eagers shares. By the end of that month, he held more than 70.33 million shares.
He bought another 100,000 Eagers shares in August.
