Martin Gilbert, Chairman of FTSE 250 transport firm FirstGroup, has ignored broker recommendations to purchase 50,000 shares on the same day the company unveiled its plans to move its UK bus shake-up into the fast lane.
Gilbert bought the shares on Wednesday at 217.50p each for a total of £108,750. He now holds 240,530 shares in the company.
The bus and train operator, which also announced its full-year results on the same day, said the plan to 'reposition' its UK bus portfolio would allow it to focus on areas which offer the greatest potential for growth.
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The company was upbeat about its results, which saw revenue rise 4.1% to £6,678.7m from £6,416.7m the year before, ahead of expectations of £6,499.8m. However, there was an extra week of trading this time round, and with the effects of this excluded, revenue was up 2.9% year-on-year.
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However, a number of brokers were less positive, with Paul Hickman at Peel Hunt commenting on the emerging trading weakness in UK Bus and the fact that the issues in First Student are still being resolved. He believes that it will be "some time before FirstGroup's over-extended balance sheet can be corrected" and recommended selling the stock.
Meanwhile, Charles Stanley left its hold recommendation and 250p target price in place for the company saying that, in its view, "this year is going to be worse, not better, as surgery is performed on the UK bus division; our FY13 forecasts are likely to stay where they are," the broker added.
Non-Executive Director David Begg also made a purchase on the same day, buying 31,847 shares at around 218p each, taking his total to 61,666 shares.
Top Director Buys
F&C Asset Management (FCAM)
Director name: Mr Edward Bramson
Amount purchased: 150,000 @ 70.03p
Value: £105,045
Banco Santander SA (BNC)
Director name: Ms Isabel Tocino Biscarolasaga
Amount purchased: 11,000 @ 369.37p
Value: £40,631
Imperial Innovations Group (IVO)
Director name: Professor David Begg
Amount purchased: 14,000 @ 314.80p
Value: £44,072
KCOM Group (KCOM)
Director name: Mr Martin Towers
Amount purchased: 20,000 @ 68.91p
Value: £13,782
KCOM Group (KCOM)
Director name: Mr Martin Towers
Amount purchased: 20,000 @ 68.90p
Value: £13,780
KCOM Group (KCOM)
Director name: Mr Martin Towers
Amount purchased: 15,000 @ 67.77p
Value: £10,165
Top Director Sells
Jardine Matheson Holdings Ltd (Singapore) (JAR)
Director name: Mr Simon L Keswick
Amount sold: 26,000 @ $50.05
Value: $1,301,365
