Directors ride the waves of success in the stock market
July 3, 2024
2023 saw a strong performance in the German stock market producing positive investment returns of 19.72%/7.46%/16.71% for the DAX/MDAX/SDAX. Managers were also actively trading stocks with more than 600 transactions across the three indexes. This represents more than 2.5 dealings per trading day. It also leads to the question whether directors ride the waves of success and take advantage of the momentum in the stock market with their directors’ dealings.
More directors’ dealings at top stocks
To answer this question, BOSS STOCKS assessed the performance of DAX stocks in 2023. Heidelberg Materials, Adidas and SAP were at the top while Bayer, Siemens Energy and Zalando were at the bottom of the DAX stocks in terms of relative investment returns in 2023.1, 2 On the one hand, the three top stocks accounted for more than 11% of the directors’ dealings in the index. On the other hand, the three bottom stocks represented less than 2% of the managers’ transactions in the DAX. Hence, there seems to be a strong link between more/less directors’ dealings for the top/worst stocks in the DAX.
Examples of directors trading stocks at Heidelberg Materials and SAP
- Towards the end of October, multiple members of the management board at Heidelberg Materials bought shares. Until the end of the year the share price of Heidelberg Materials stocks increased by almost 19%.
- Between November 21 and December 5, there were disposals of SAP shares by members of the supervisory board and related parties. The share price of SAP stocks reached an all-time high the following day but closed the year more than 5% lower.
Discover the directors’ dealings to yield superior investment returns in 2024
2024 is off to a good start with the DAX’s performance of 8.36% in the first half. BOSS STOCKS is currently developing an investment platform for stocks enabling everyone to replicate directors’ dealings. Free sign up to experience the product ahead of launch and to discover the directors’ dealings for superior investment returns in the coming months.
- Finanzen.net (2023) ↩︎
- Rheinmetall was also amongst the top stocks but was not part of the DAX for the entire year as it entered the index on March 20, 2023. ↩︎