This ASX 200 stock is down 14% since April, and a director just bought over $500k worth

An inside buyer has purchased a bigger stake in this professional services company.

| More on:

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
  • The ALS share price has slipped nearly 14% since posting a 52-week high in April 
  • One insider appears to have taken advantage of the sell-off, forking out more than half a million to bolster their stake in the company
  • And they're not the only director bolstering their stake this week

Stock in S&P/ASX 200 Index (ASX: XJO) analytical and testing services provider ALS Ltd (ASX: ALQ) roared to a 52-week high of $13.48 in April before coming off the gas.

It has since slumped nearly 14% to trade at $11.67 right now.

But there's a silver lining. The tumble might have brought about a buying opportunity.

That's suggested by an insider purchase that saw the ASX 200 company's chair snap up more than $500,000 worth of its stock.

A young woman sits at her desk in deep contemplation with her hand to her chin while seriously considering information she is reading on her laptop.

Image source: Getty Images

An insider just sunk more than $500k into this ASX 200 stock

ALS chair Bruce Phillips has sat on the company's board for nearly eight years, heading the table for close to seven of those.

One might assume his time running the ship sees him with a good understanding of the company's strengths and weaknesses.

Thus, some market watchers are likely intrigued by a recent purchase undertaken by the director.

Phillips indirectly purchased 50,000 stocks in the ASX 200 industrials company on the market earlier this week.

He paid around $11.68 per share to do so, forking out a total of approximately $584,000.

That same day, independent non-executive director Peter Possemiers also splurged on the market. He paid nearly $20,000 to bolster his parcel of ALS shares.

That saw him buying 11,470 securities for $11.46 apiece on the market – positively a bargain compared to his previous purchase.

Possemiers joined the company's board in November last year. Soon after, he forked out close to $30,000 to buy 2,470 of the ASX 200 constituent's stocks for $12.14 apiece.

The most significant news weighing on the ALS share price in recent weeks appears to have been the company's full-year earnings.

The ASX 200 stock tumbled 4% late last month despite the company posting a 23% jump in net profit after tax (NPAT), surging above previous guidance, and a 19% increase in revenue.

Motley Fool contributor Brooke Cooper 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 Industrials Shares

A middle aged man holds a plumbing plunger in one hand and a piece of toilet pipe in the other, with an exasperated look on his face.
Industrials Shares

Reece shares sink despite dividend boost. Is it a buy?

Reece shares fall despite a bigger final dividend for shareholders.

Read more »

A man in a suit looks surprised as he looks through binoculars.
Earnings Results

Ventia Services Group delivers higher profit and fully-franked dividend in HY26

Ventia declared a fully franked interim dividend of 11.76 cents per share.

Read more »

Smiling man working on his laptop.
Earnings Results

Ansell FY26 earnings: Sales and profit surge boost outlook

Ansell posted strong sales and profit gains in FY26, raising its dividend after navigating tariff and supply challenges.

Read more »

Man working on his tablet with hologram of a world map and financial-related charts.
Earnings Results

Perenti lifts FY26 profit, sees opportunities ahead

Perenti delivered steady revenue, stronger margins, and higher profit in FY26, with a positive outlook for the year ahead.

Read more »

Man analysing data on his laptop.
Industrials Shares

LGI posts FY26 earnings growth and expands renewable energy portfolio

LGI FY26 results showed strong growth in revenue, profit, and carbon abatement, as the company expands its renewable energy portfolio.

Read more »

Man analysing data on his laptop.
Industrials Shares

James Hardie sells European business, launches share buyback

James Hardie is selling its European business for €840m, funding a $250m share buyback and focusing on core growth markets.

Read more »

Cheerful smiling businesswoman sitting on a chair and typing business report on a laptop keyboard.
Industrials Shares

Service Stream Limited wins two $144m Transport for Victoria contracts

Service Stream has secured two new contracts with Transport for Victoria worth $144 million, expanding its transport maintenance portfolio.

Read more »

Two brokers analysing stocks.
Earnings Results

Downer EDI posts stronger margin and profit in FY26 earnings

Here's what the company reported for the 12 months.

Read more »