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Director dealings: Vodafone, Deliveroo, FirstGroup

John Choong — Sat, 20 Aug 2022 07:00:15 +0000

Director dealings are essentially insider transactions for shares between directors and the companies they work for. These dealings are always made public, and are often considered a good indicator of a company’s future prospects. However, they don’t get nearly as much attention as other company news due to their complex nature. Nonetheless, here I’m breaking down this week’s biggest director dealings from three FTSE firms.

Vodafone

VodafoneÂ (LSE:VOD) is a British multinational telecommunications company. It predominantly operates services in Asia, Africa, Europe, and Oceania. The company runs at least some form of operations in over 150 countries.

Following lacklustre numbers from its Q1 trading update, the share price dropped by 5%. It has stayed there since. Despite that though, it’s a sign of confidence when a high-ranking director purchases shares. And this week, Vodafone’s Chairman decided to reinvest his dividends into buying more Vodafone shares.

Name: Jean-FranÃ§ois van Boxmeer
Position of director: Chairman
Nature of transaction: Dividend shares
Date of transaction: 10 August 2022
Amount bought: 9,975 @ Â£1.21
Total value: Â£12,069.75

Deliveroo

Deliveroo (LSE: ROO) is a British online food delivery company. It operates in over 200 locations across the UK, and is the second-biggest food delivery platform in the country. It also operates internationally with operations in France, Singapore, Australia, and many more.

In this weekâs transaction, a director exercised his option to redeem stock compensation. Following this, he opted to sell approximately half of the shares received to cover tax liabilities. That being said, it’s worth noting that this is a monthly occurrence from the company’s CFO. As such, these actions shouldn’t impact investor sentiment surrounding the stock. It’s worth pointing out, however, that the sale of these shares dilute shareholders’ value. This is because there are now more Deliveroo shares floating on the market.

Name: Adam Miller
Position of director: Chief Financial Officer
Nature of transaction: Award shares
Date of transaction: 15 August 2022
Amount vested: 83,400 @ Â£0.96
Total value: Â£80,247.48

Name: Adam Miller
Position of director: Chief Financial Officer
Nature of transaction: Sales of shares to cover tax liabilities
Date of transaction: 15 August 2022
Amount sold: 40,402 @ Â£0.95
Total value: Â£38,381.90

FirstGroup

FirstGroup (LSE: FGP) is a British multi-national transport group. The FTSE 250 firm is the leading transport operator in the UK and North America. It is widely known for being a provider of public transport, especially buses in the UK.

Rather surprisingly, its shares have managed to outperform the wider UK market index this year. But after the share price took an 11% hit last week, a couple of large director dealings were carried out. The first involves a non-executive director purchasing a substantial number of shares. But what really caught my eye were the conditional share awards that could be awarded to FirstGroup’s CEO and CFO. This should shore up investors’ confidence in the stock, as the group’s management will have to perform and meet investors’ expectations in order for these award shares to vest.

Name: Sally Cabrini
Position of director: Non-Executive Director
Nature of transaction: Purchase of shares
Date of transaction: 17 August 2022
Amount vested: 10,000 @ Â£1.15
Total value: Â£11,482

Name: Graham Sutherland
Position of director: Chief Executive Officer
Nature of transaction: Award shares
Date of transaction: 18 August 2022
Amount vested: 972,590 @ Nil
Total value: N/A

Name: Ryan Mangold
Position of director: Chief Financial Officer
Nature of transaction: Award shares
Date of transaction: 18 August 2022
Amount vested: 1,003,226 @ Nil
Total value: N/A

Types of Shares

To provide context, there are a few types of shares that can be purchased by directors. Some directors opt to purchase shares via the open market. Having said that, directors also have the option to purchase and receive shares via a share incentive plan (SIP).

A SIP is an employee plan for companies within the UK to flexibly award shares to employees. Publicly listed companies normally exercise this option because itâs tax-efficient for both the employer and its employees.

Types of shares within a SIP

In this week’s set of director dealings, a few types of SIPs were exercised. For starters, Vodafone’s Chairman opted to purchase more Vodafone shares from the dividends he received from his current shares.

On the other hand, Deliveroo’s CFO decided to exercise the option of redeeming his restricted stock units. These are a form of award shares which allow for directors to redeem shares at a later date, as either as part of their salary or based on meeting performance obligations.

FirstGroup’s CEO and CFO were awarded shares as well, but these will only be vested once performance targets are met. In this case, more than 1.5m shares are up for grabs between the two directors under the operator’s long-term incentive plan (LTIP). The LTIP award will normally vest on the third anniversary of the date of award, subject to satisfaction of performance conditions and continued employment. The award is also subject to an additional holding period of two years from the date on which the award vests.

The post Director dealings: Vodafone, Deliveroo, FirstGroup appeared first on The Twelfth Magpie.

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John Choong has no position in any of the shares mentioned. The Motley Fool UK has recommended Deliveroo Holdings Plc and Vodafone. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Director dealings: Rolls-Royce, Lloyds, Vodafone

John Choong — Sat, 16 Jul 2022 07:00:12 +0000

Rolls-Royce

Rolls-Royce (LSE: RR) a British multinational aerospace and defence holdings company. It is one of the world’s largest maker of aircraft engines, and operates in four different segments. These include civil aerospace, power systems, defence, and new markets. This week, four director dealings were carried out, albeit in small volumes.

Name: Lee Hsien Yang
Position of director: Non-Executive Director
Nature of transaction: Purchase of shares (Share purchase plan)
Date of transaction: 7 July 2022
Amount bought: 1,184 @ Â£0.83
Total value: Â£950.59

Name: Wendy Mars
Position of director: Non-Executive Director
Nature of transaction: Purchase of shares (Share purchase plan)
Date of transaction: 7 July 2022
Amount bought: 2,198 @ Â£0.83
Total value: Â£1,820.38

Name: Sarah Armstrong
Position of director: Chief People Officer
Nature of transaction: Purchase of shares (Share purchase plan)
Date of transaction: 7 July 2022
Amount bought: 147 @ Â£1.02
Total value: Â£149.91

Name: Rob Watson
Position of director: President (Rolls-Royce Electrical)
Nature of transaction: Purchase of shares (Share purchase plan)
Date of transaction: 7 July 2022
Amount bought: 147 @ Â£1.02
Total value: Â£149.91

Lloyds

Lloyds (LSE: LLOY) is one of Britainâs biggest financial institutions. Its brands include Lloyds itself, Halifax, and Bank of Scotland. It earns the bulk of its revenue from mortgage loans. A large number of director dealings occurred with Lloyds shares this week.

Name: Joanna Harris
Position of director: Interim Group Director
Nature of transaction: Partnership shares and matching shares
Date of transaction: 11 July 2022
Amount bought: 296 @ Â£0.42
Amount received: 106 @ nil
Total value: Â£124.91

Name: Antonio Lorenzo
Position of director: Chief Executive Officer (Scottish Widows)
Nature of transaction: Partnership shares and matching shares
Date of transaction: 11 July 2022
Amount bought: 355 @ Â£0.42
Amount received: 106 @ nil
Total value: Â£149.81

Name: Janet Pope
Position of director: Chief of Staff and Group Director of Sustainable Business
Nature of transaction: Partnership shares and matching shares
Date of transaction: 11 July 2022
Amount bought: 296 @ Â£0.42
Amount received: 106 @ nil
Total value: Â£124.91

Name: Stephen Shelley
Position of director: Chief Risk Officer
Nature of transaction: Partnership shares and matching shares
Date of transaction: 11 July 2022
Amount bought: 355 @ Â£0.42
Amount received: 106 @ nil
Total value: Â£149.81

Name: Andrew Walton
Position of director: Group Corporate Affairs Director
Nature of transaction: Partnership shares and matching shares
Date of transaction: 11 July 2022
Amount bought: 71 @ Â£0.42
Amount received: 105 @ nil
Total value: Â£29.96

Vodafone

Vodafone (LSE: VOD) is is a British multinational telecommunications company. It predominantly operates services in Asia, Africa, Europe, and Oceania. A significant director exercised their options to purchase Vodafone shares this week.

Name: Nick Read
Position of director: Chief Executive Officer
Nature of transaction: Purchase of shares (Vodafone Sharesave Plan)
Date of transaction: 11 July 2022
Amount bought: 22,352 @ Â£1.01
Total value: Â£22,499.52

Types of shares in a SIP

To provide context, there are a few types of shares within a company’s share incentive plan (SIP). A SIP is an employee plan for companies within the UK to flexibly award equity to employees. Publicly listed companies normally exercise this option because itâs tax-efficient for both the employer and its employees.

Types of shares within a SIP (Source: BDO.co.uk)

In this week’s dealings, directors at Rolls-Royce opted to purchase shares under a share purchase plan. This is a form of capital raising by Rolls-Royce which offers shareholders the opportunity to apply for new, additional shares.

As for Lloyds, the director dealings occurred with partnership shares and matching shares. Partnership shares give employees the opportunity to buy shares via deductions from their salary, before tax deductions. But where partnership shares are offered, the company can also offer matching shares, as was the case. This can range up to a maximum ratio of two free matching shares per partnership share purchased. Nonetheless, it’s important to note that matching shares must normally be held in a trust for at least three years, and held for five years in order to receive a full tax relief. However, these shares may be forfeited if an employee withdraws their partnership shares from the trust.

Finally, in the case of Nick Read, the CEO exercised his options to purchase shares under the Vodafone Share Save Plan. These options are exercisable five years from the savings contract start date, provided that the required monthly savings were made.

The post Director dealings: Rolls-Royce, Lloyds, Vodafone appeared first on The Twelfth Magpie.

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John Choong has no position in any of the shares mentioned. The Motley Fool UK has recommended Lloyds Banking Group and Vodafone. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.