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Saga directors buy on weakness

The group’s shares plunged following news of a large – and costly – strategy overhaul
May 2, 2019

In early April, Saga (SAGA) dramatically overhauled its growth strategy as it sought to address the continued commoditisation of the insurance market. It cut its final dividend to just 1p, a sixth of the previous year’s payment, while taking a £310m impairment and warning of profitability “significantly below” previous years. This led to a sharp drop in the share price, closing the day down 37 per cent on the previous day’s closing price.

IC TIP: Hold at 59p

Such a share price drop is hardly surprising, but some clearly felt the reaction was overblown – a number of directors bought up shares at the depressed price, signalling faith in the group’s future prospects. Just a few weeks after the announcement, directors Lance Batchelor, Ray King and James Quin each bought thousands of shares in the group.

Management’s new growth strategy will prioritise direct-to-consumer offerings, “moving the conversation from price to value”. Change will not come cheap, however, and the group has lowered adjusted pre-tax profit guidance to £105m-£120m for the year to January 2020, compared with £180m in the 2019 financial year.

Buys       
CompanyDirectorDateNo of sharesPrice (p)Value (£)Holding (shares)Holding (%)
Alumasc    Graham Hooper (ceo)18 Apr 201936,26694.534,271519,5341.438
Comptoir    Chaker Hanna (ceo)23 Apr 20194,750,00010475,00022,585,83318.412
Comptoir    Richard Kleiner (ch)23 Apr 2019250,0001025,000610,0000.497
EMIS    Andrew Thorburn (ceo)18 Apr 20191,8131,130.4020,49424,6000.039
EMIS    Andrew Thorburn (ceo)18 Apr 20192,6521,131.2029,99927,2520.043
Independent Oil & Gas  Fiona MacAulay (ch)24 Apr 2019200,0001020,000200,0000.059
Independent Oil & Gas  Andrew Hockey (ceo)24 Apr 2019100,0001010,000100,0000.030
Independent Oil & Gas  Mark Hughes24 Apr 2019100,0001010,000278,0000.082
Independent Oil & Gas  Esa Ikaheimonen 24 Apr 2019500,0001050,000500,0000.148
IndigoVision    Pedro Simoes (ceo)18 Apr 20195,0001437,15028,1840.375
IndigoVision    Max Thowless-Reeves (ch)24 Apr 201910,00015015,000137,3831.828
InnovaDerma  Kieran Callan (ceo)24 Apr 20194,800974,65615,8000.109
Invesco Perpetual UK Smaller Companies Inv Tst  Bridget Guerin24 Apr 20193,88451219,8863,8840.012
Manchester & London Investment Trust  David Harris (ch)18 Apr 20192,00050610,12012,0000.043
Oxford BioMedica  Andrew Heath23 Apr 20192,71166818,10946,6880.071
Oxford BioMedica♥Andrew Heath23 Apr 20193,31267322,29050,0000.076
Personal Assets Trust  Robin John Angus18 Apr 2019240,5008104,8330.202
Personal Assets Trust  Frank Rushbrook24 Apr 2019240,63781315,2210.636
Personal Assets Trust  Frank Rushbrook24 Apr 2019240,63781315,2230.636
Personal Assets Trust  Frank Rushbrook24 Apr 2019140,63740615,2240.636
Personal Assets Trust  Frank Rushbrook24 Apr 2019140,63740615,2250.637
Personal Assets Trust  Frank Rushbrook24 Apr 2019540,6372,03215,2300.637
Personal Assets Trust  Iain Ferguson24 Apr 2019340,6371,2192,4120.101
Personal Assets Trust  Iain Ferguson24 Apr 2019240,6378132,4140.101
ReNeuron    Christopher Evans18 Apr 201910,000228.722,870254,6050.805
Rotork♥Jonathan Davis (fd)18 Apr 2019453317.021,436270,2980.031
Saga  Lance Batchelor23 Apr 201932,36556.818,383229,1400.020
Saga  Lance Batchelor23 Apr 20192,64057.11,507231,7800.021
Seeing MachinesRudolph Burger24 Apr 2019250,00037,500856,3830.025
Seeing MachinesHarold Carmichael24 Apr 20191,266,667338,0001,696,6540.050
Seeing Machines Jack Boyer (ch)24 Apr 2019666,667320,000666,6670.020
Seeing Machines Luke Oxenham (cfo)24 Apr 2019100,00033,000100,0000.003
Seeing Machines Catherine Hill 24 Apr 2019550,000316,500550,0000.016
Time Out♥Anthony Elliott 24 Apr 20195,000101.75,0851,827,3471.357
Zenith EnergyAndrea Adorno 18 Apr 2019593,2890.37219,51720,652,91113.481
Zoo Digital    Phillip Blundell (cfo)23 Apr 201925,00044.211,05050,0000.067
Sells       
CompanyDirectorDateNo of sharesPrice (p)Value (£)Holding (shares)Holding (%)
Fisher (James) & Sons♥Mr Stuart Kilpatrick (fd)24 Apr 20192,550198050,49049,6090.099
Fisher (James) & Sons♥Mr Stuart Kilpatrick (fd)18 Apr 20194,4001,999.1487,96252,1590.104
Sterling Energy  Michael Kroupeev (ch)18 Apr 2019500,00011.658,00064,315,51729.227
TOC Property Backed Lending Trust  Stephen Coe (ch)18 Apr 201920,00010020,00010,0000.037
*Placing/tender/open offer ♥Spouse/connected party