186 trades worth over $40 million: This ASX 200 director can't stop buying his company's shares!

This ASX 200 director has a long history of regularly increasing his personal investment in the business.

| More on:
A man and a woman sit in front of a laptop looking fascinated and captivated.

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 director Nicholas Politis AM bought more than $600,000 worth of shares last week 
  • Politis has a long history of regularly increasing his personal stake in Australia's largest car dealership network 
  • Over the past decade, Politis has personally invested an extra $40 million in the ASX 200 company 

Eagers Automotive Ltd (ASX: APE) director Nicholas Politis AM has been on a buying spree of late. In fact, he's been on a buying spree for at least a decade.

And this sends a big signal of confidence to ordinary ASX 200 investors.

According to recent notices lodged with the ASX, Politis was once again keenly raising his stake in the S&P/ASX 200 Index (ASX: XJO) company he helps run last week.

Eagers Automotive is Australia's largest car dealership group.

Politis is the executive chair of WFM Motors, which is Eagers Automotive's largest shareholder.

ASX director buys $600,000 worth of shares in a week

According to the latest disclosure, Politis now holds more than 70.635 million Eagers shares.

The Eagers Automotive share price opened the session today at $12.73. That gives Politis a total portfolio value of just under $900 million.

Notices lodged with the ASX reveal he purchased another 10,000 shares on-market per day last week at a total cost of just over $617,000.

Historical records show Politis has made 186 on-market purchases over the past 10 years, with not a single sell order made in that time.

Politis has spent a total of just under $42.85 million during this decade-long history of ASX buys.

This sort of trading isn't so unusual.

When a company director is passionate about their business, it's pretty routine to see them upping their personal stake at regular intervals.

The most stunning example of this was seen back in March when fellow ASX 200 retail boss Gerry Harvey spent more than $70 million buying more Harvey Norman Holdings Limited (ASX: HVN) shares.

And that was over a single month!

Politis's purchases follow the recent Eagers Automotive annual general meeting (AGM) on 24 May.

What happened at the Eagers AGM?

At the AGM, Eagers chair Tim Crommelin said demand for vehicles in 2023 continues to exceed supply.

Crommelin said:

In the first four months of the year, demand for vehicles continued to exceed supply and our order bank continues to grow to record levels with an extended run-off period.

Despite a number of challenges in the operating environment, including port congestion, bio security issues and the cost pressures that exist across the broader economy, we are pleased to report that underlying net profit before tax for the period to April 2023 is in line with 2022 levels.

Eagers and the EV opportunity

Eagers CEO Keith Thornton discussed the "generational opportunity" of car electrification.

Thornton said:

… Eagers Automotive has been proactive in positioning the business to play a leading role in the transition to a lower emission future, particularly in the affordable NEV or New Energy
Vehicle segment, which includes both Battery Electric Vehicle (BEV) and Plug-in Hybrid Electric
Vehicle (PHEV) categories.

We continue to make progress with our plans uniquely positioning the company to deliver on this generational opportunity for our shareholders.

We remain very confident that our business structure, scale and strategy, combined with the
strength of our balance sheet provides the company with the capacity and flexibility to pursue
accretive growth opportunities while mitigating against economic headwinds

Recent history of this ASX 200 share

The Eagers Automotive share price is up 17.65% in the year to date.

Over the same period, the ASX 200 has ascended 3.5%.

Motley Fool contributor Bronwyn Allen has positions in Harvey Norman. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Harvey Norman. The Motley Fool Australia has positions in and has recommended Harvey Norman. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Consumer Staples & Discretionary Shares

Man holding out Australian dollar notes, symbolising dividends.
Consumer Staples & Discretionary Shares

Everything you need to know about the Woolworths dividend

Woolworths will pay out its largest interim dividend in three years in 2024.

Read more »

A man looks a little perplexed as he holds his hand to his head as if thinking about something as he stands in the aisle of a supermarket.
Consumer Staples & Discretionary Shares

Woolworths share price dives 7% following Banducci bombshell

ASX 200 investors are pressuring the Woolworths share price today amid the shock departure of CEO Brad Banducci.

Read more »

Two parents and two children happily eat pizza in their kitchen as a top broker predicts a 46% upside for the Domino's share price
Earnings Results

Domino's share price charges higher on improving outlook

Here's how this struggling pizza chain operator performed during the first half.

Read more »

two men in suits with their backs to the camera walk off into a sunset on a city street with one placing his hand on his companion's shoulder as if in a fond gesture.
Earnings Results

Woolworths shares on watch after CEO exit and $781 million loss

Brad Banducci retires as New Zealand business devastates the supermarket's bottom line.

Read more »

Money Wealth Coin on Shopping Cart and grow up as creative investment ideas.
Dividend Investing

If I invest $10,000 in Woolworths shares, how much dividend income will I receive in 2024?

The supermarket giant is due to report its 1H FY24 results and interim dividend tomorrow.

Read more »

A man has a surprised and relieved expression on his face. as he raises his hands up to his face in response to the high fluctuations in the Galileo share price today
Earnings Results

Guess which ASX 200 stock is surging 13% after solid half-year result

This stock is charging higher after investors responded positively to its results release.

Read more »

Young man sitting at a table in front of a row of pokie machines staring intently at a laptop. looking at the Crown Resorts share price
52-Week Lows

Star Entertainment share price crashes 26% upon return to trade

This is a new 52-week low.

Read more »

jumbo share price
Consumer Staples & Discretionary Shares

A fund manager is betting on this ASX 300 stock. Is it a buy?

WAM has picked out a compelling stock to buy.

Read more »