Insider: Selling season in full swing

Travis Perkins bean counter offloads

Builders' merchant Travis Perkins said in October it had continued to outperform the market during the third quarter, but that like-for-like volumes across all its businesses were "noticeably weaker" during July and August. They've picked up since, and the share price is up 9%, too.  

That's enough for finance director Tony Buffin and his wife. The pair will have a very merry Christmas after offloading 7,400 Travis shares between them at 2,009p and 2,011p, netting £149,000. Their remaining shares are currently worth £1.6 million.

What does this tell us about the state of Travis right now? Well, like-for-like sales rose 2.6% in the third quarter, which was less than expected, and Travis warned that full-year underlying operating profit would be at the lower end of market expectations. That suggests £415 million of profit this year, up 8%.

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"Santa may bring an early Christmas present, but we are not holding our breath," says Panmure Gordon's Adrian Kearsey. "Given the deterioration in trading we are maintaining our 'sell' recommendation and reducing our target price from 1,950p to 1,650p."

Even Barclays, normally optimistic, admits that consumer confidence looks more fragile, and rate rises next year could stifle housing demand. The UK economic surprise index is the most negative of the UK, Europe and the US.

Pendragon boss makes millions

Pendragon shares have traded a tight range for over four months, not unusual for the car dealer, which often pauses for breath before the next catalyst sparks a fresh rally. But chief executive Trevor Finn is not in a patient mood.

The boss has just trousered more than £2 million after selling 4.5 million shares at 45.375p each. His remaining 15.5 million shares are currently worth over £6.6 million.

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Selling big numbers at Novae

Insurer Novae has had a cracking 2015. Its share price is up 59%, and the company recently reported a 20% increase in gross written premium to £619.5 million, driven by investment in new underwriting teams.

"Another benign period for catastrophe events leaves the business well positioned for the final quarter, despite a softening rating environment," said chief executive Matthew Fosh.

But less than a month after chief underwriting officer Robert Forster sold 40,000 shares for £345,000, non-executive director David Henderson is at it. The career banker pocketed almost £255,000 after ditching 29,555 shares at 861.5p.

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It seems like a takeover is off the cards then, at least near-term. Westhouse Securities recently said Novae's improving pre-tax profit, a more focused specialist insurance portfolio and "easy" structure - it's a 100% owned, Lloyd's insurer - plus the scarcity value attaching to a Lloyd's platform "may attract attention".

Without a bid, the shares still look attractive though. A price/tangible net asset value (tNAV) of 1.5 times is a big discount to peers, and it offers a prospective yield of well over 5%.

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.