This ASX All Ords director can't stop buying their company's shares!

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APM Human Services International Ltd (ASX: APM) shares have been getting a vote of confidence from one of the key insiders of the ASX All Ordinaries share.

For readers who haven't heard of the business before, it's a global human services provider. Each year, it supports more than 2.1 million people through its service offerings. These include "assessments, allied health and psychological intervention, medical, psycho-social and vocational rehabilitation, vocational training and employment assistance and community-based support services".

It has sites across 11 countries – Australia, the UK, Canada, the USA, New Zealand, Germany, Switzerland, Sweden, Spain, Singapore, and South Korea.

Directors load up on APM shares

The director in question is the executive chair Megan Wynne who has been buying shares this year. There has recently been another investment.

Last week, the ASX All Ords share announced Wynne had bought another 550,000 APM shares on the market for a total cost of $970,750. That's an average price of $1.765 per share. With the company's share price currently sitting at $1.87, that marks a 6% rise since then.

The latest purchase means Wynne has bought around $3 million of shares in September (so far). That takes Wynne's total direct ownership of APM shares to approximately 194.1 million shares.

It was also announced today the company's CEO and executive director Michael Anghie bought 500,000 APM shares on 18 September 2023 for a total cost of $935,000. That took Angie's director ownership to 20.7 million APM shares.

Why are insiders pouncing on these ASX All Ords shares?

Over the last 12 months, the APM share price has fallen more than 40%, so the company is now much cheaper than it used to be.

It's not as though the company has been reporting losses or profit declines. In its FY23 result, revenue grew 43% to $1.9 billion, with organic revenue growth of $183 million.

Statutory net profit after tax and before amortisation of customer contracts (NPATA) rose 72%, while underlying NPATA increased 7% to $178 million.

In terms of the outlook, the business said FY24 mobilisations of newly awarded contracts will go live and contribute incremental revenue of at least $125 million in FY25.

However, employment services growth is expected to be subdued in FY24 because of low unemployment rates reducing client flows into employment programs.

Its 'health and wellbeing' is expected to continue to grow.

The North American business is expected to grow thanks to contract wins and the company's Equus acquisition.

The ASX All Ords share also said it is assessing other potential acquisitions.

APM share price valuation

According to Commsec, the business is valued at just nine times FY24's estimated earnings and could pay a grossed-up dividend yield of almost 8%.

Motley Fool contributor Tristan Harrison 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 recommended APM Human Services International. 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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