Guess which ASX All Ords director just bought $1.6m of their company’s shares

This company chair now boasts a 23% stake in the company.

Brooke Cooper❯

Published October 10, 10:58 am AEDT

HUM

Image source: Getty Images

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Key points

• Humm founder, chair, and largest shareholder Andrew Abercrombie has once again upped his stake in the All Ords company
• He now holds more than 23% of the company's outstanding shares after snapping up an extra 3.3 million of them last week
• It comes just months after Abercrombie found himself seated at an empty board table after six of the company's seven then-directors walked out

Insider buying is often heralded as a signal that those at a company’s helm are confident of its potential growth. And this All Ordinaries Index (ASX: XAO) share has been subject to yet more insider buying.

Humm Group Ltd (ASX: HUM)’s largest shareholder Andrew Abercrombie – who also happens to be its founder and chair – has upped his stake in the diversified financial provider once more.

He now holds approximately 23.6% of the ASX All Ords company’s outstanding shares, according to ASX data. The Humm share price is currently trading at 47 cents, leaving his parcel valued at around $55 million.

Let’s take a closer look at the latest round of insider buying of the company’s shares.

ASX All Ords share sees more insider buying

Abercrombie has been at it again, indirectly forking out $1.6 million on Humm shares.

His buying comes just months after he was reinstated as the company’s chair after the entirety of its board, aside from Abercrombie, walked out.

Their exit came in the wake of an Abercrombie-led campaign against a $335 million acquisition offer for the company’s consumer finance leg – containing its BNPL business.

The part-cash, part-scrip bid came fromLatitude Group Holdings Ltd (ASX: LFS). Both an independent expert and the majority of the company’s board concluded the offer was in shareholders’ best interests in May.

Abercrombie was the only director to disagree. He soon upped his stake in a vocal effort to halt the transition.

A release to the ASX following the acquisition’s failure, authorised by the majority of the company’s directors, read:

The events leading to the termination of the proposed sale … have caused the majority directors of [Humm] to conclude that they cannot remain on the board … with Andrew Abercrombie.

The now-chair snapped up around 3.3 million additional shares in the ASX All Ords company last week.

Of those, around 2.1 million of the All Ords company’s shares were snapped up by Abercrombie’s trust. Another parcel of approximately 1.2 million shares was bought by the Abercrombie Superannuation Fund.

That leaves the director holding 118 million Humm shares. The company currently has 500 million shares outstanding, according to the ASX.

Should you invest $1,000 in Humm Group Limited right now?