Quindell directors snap up £2m of shares

5th Nov 2014 14:26

Quindell founder and chairman Robert Terry revealed his confidence in the outsourcing company's future as he and two other directors collectively bought almost £2m worth of shares.Terry, who already owned more than 10% of AIM-listed Quindell, bought exactly 1m shares at an average price of 123.47p, increasing his stake in the firm to 10.69%.Finance director Laurence Moorse bought 50,000 shares at 123p each and non-executive director Steve Scott picked up 525,000 shares at 123.84p per share. Both board members have now increased their stakes in the firm to 0.29% and 1.29% respectively.The directors secured funding for the purchases via a loan facility from Equities First Holdings, a securities-based capital provider for institutional and individual clients, making an agreement that they redeem the transferred shares at maturity when the loan is repaid at the end of the two year term "and it is their full intention to do so".Quindell's share price suffered earlier this year, following harsh criticism from analysts at US-based Gotham City Research, who in April described the insurance technology and personal injury claims group as a "country club built on quicksand".But the company has fought back both in the courts, winning a high court judgement against Gotham, and with recent third quarter results that showed revenues more than doubled.As of 16:00 on Wednesday, Quindell's shares were trading up 4.49% at 130.75p per share - 80% lower than their pre-Gotham attack, where shares were priced around 660p.In a statement issued by the company, Terry said: "As demonstrated by the purchases made by some of the board today and recently by other members of the board and executive team, we believe the current market valuation of the company is materially below its true value. The board remains confident of meeting full year market expectations and of the company's longer term prospects."Elsewhere, Geoffrey Simmonds, CEO of venture capital firm Westside Investments, resigned from his role as non-executive of Fitbug after he sold a quarter of Westside's stake in the wellbeing company, whose shares have rocketed recently.Fitbug's public relations firm said Simmonds "remains supportive" of the company.Top Director BuysQuindell (QPP) Director name: Mr Robert TerryAmount purchased: 1,000,000 @ 123.47p Value: £1,234,700Quindell (QPP) Director name: Mr Stephen ScottAmount purchased: 525,000 @ 123.84p Value: £650,160St Ives (SIV) Director name: Mr Matthew ArmitageAmount purchased: 37,786 @ 192.35p Value: £72,681Quindell (QPP) Director name: Mr Laurence MoorseAmount purchased: 50,000 @ 123.00p Value: £61,500Stobart Group Ltd. (STOB) Director name: Mr John CoombsAmount purchased: 50,337 @ 99.20p Value: £49,934Abcam (ABC) Director name: Mr Murray HennessyAmount purchased: 6,000 @ 408.17p Value: £24,490Top Director SellsRotala (ROL) Director name: Mr Frank Geoffrey FlightAmount sold: 125,055 @ 54.00p Value: £67,530