Truth about Purple Group CEO Charles Savage’s share trades

Charles Savage

An analysis by Daily Investor revealed that Purple Group CEO Charles Savage and CFO Gary van Dyk were net buyers of shares when options were considered, but not with on-market transactions.

Purple Group executives and directors were recently accused of talking up the company while dumping millions in shares, ultimately hurting retail investors.

Many commentators highlighted that Purple Group directors and executives sold millions in shares while telling retail investors it is a great company to invest in.

Savage hit back at accusations, saying, “99.9% placed with institutions who wanted the shares and hold them today. Personally, I was a net buyer, as was the CFO”.

“Charles Savage and Gary van Dyk sold shares at the time to enable them to exercise options, including paying for them and the tax and to manage some debt,” company spokesperson Carel Nolte said.

“Crudely put, they didn’t sell in Purple to take money to buy flashy cars but to largely invest more in the company.”

He added that the Purple Group CEO and CFO bought or exercised more shares than they sold. “They are long-time holders,” he said.

The Purple Group CEO urged people to look at the publicly available information about their share trades before drawing conclusions.

Daily Investor analysed Savage and Van Dyk’s share trades since 2014, which revealed the following.

  • When all transactions were considered, there was a net buying in the number of shares and cash flows for the Purple Group CEO and CFO.
  • Looking at on-market, non-option trades, there was a net selling in the number of shares and cash flows.

The data showed that most of Savage and Van Dyk’s share buys were linked to options, a reward mechanism for Purple Group executives and directors.

The Purple Group executive options differ from buying shares with cash on the market as there is no downside risk.

The share options allowed directors to pay between 35c and 75c per Purple Group share, significantly lower than the prevailing market share price over the period.

Unsurprisingly, the directors mainly exercised their options if there was an immediate benefit. If there was no immediate benefit, the options were mostly not exercised.

There is, therefore, merit in both arguments related to Purple Group CEO Charles Savage and CFO Gary van Dyk.

It is true that they were net buyers of shares – both in terms of the number of shares and the money spent.

However, the net buying of shares from Savage and Van Dyk was not the same as the on-market buying from directors, typically seen as a vote of confidence in the company.

As most of the trades were options with an immediate upside, it was merely a way for them to exercise and benefit from their options.

It should be highlighted that Savage and Van Dyk held on to millions of their option shares, which is a positive sign.

The tables below show the share trades from Purple Group CEO Charles Savage and CFO Gary van Dyk from January 2014.

Purple Group CEO Charles Savage’s share trades

DateDirectorTypeNumberPrice Cashflow
31-Aug-22Charles SavageSell7000000R2.05 R14 350,000.00
03-Aug-22Charles SavageSell50000R2.06 R102,900.00
06-May-22Charles SavageBuy (Option)10000000R0.75 -R7 535 000.00
14-Dec-21Charles SavageSell250000R0.98 R245 000.00
10-Nov-21Charles SavageBuy (Option)2000000R0.35-R702 000.00
17-Dec-20Charles SavageBuy (Option)7000000R0.19-R1 337 000.00
30-Jul-20Sarah SavageSell150000R0.53 R79 500.00
05-Feb-20Sarah SavageSell250000R0.37 R93 000.00
20-Jan-20Charles SavageSell120000R0.41 R49 200.00
06-Dec-19Charles SavageBuy (Option)7000000R0.31-R2 170 000.00
30-Aug-19Sarah SavageSell664354R0.26 R169 788.29
23-Jul-19Sarah SavageSell350000R0.29 R101 500.00
02-MaySarah SavageSell150000R0.30 R45 000.00
06-Feb-19Sarah SavageSell500000R0.28 R140 000.00
22-Jan-19Sarah Savagesell370000R0.29 R107 300.00
28-Dec-18Sarah SavageSell166667R0.30 R50 000.10
28-Feb-18Kingsway trust (Charles Savage)Sell1112979R0.28 R311 634.12
28-Feb-18Charles SavageMarket buy21580R0.26-R5 610.80
08-Dec-16Charles SavageSell36000R0.55 R19 800.00
21-Jul-16Charles SavageSell250000R0.60 R150 000.00
11-Dec-15Charles SavageBuy (Option)10000000R0.76-R7 600 000.00
28-Aug-15Charles SavageSell4000000R0.45 R1 800 000.00
19-Feb-15Charles SavageBuy (Option)7000000R0.12-R840 000.00
13-Nov-14Charles SavageBuy (Option)2000000R0.38-R760 000.00
03-Feb-14Charles SavageOff-market buy5000000R0.22-R1 100 000.00

Purple Group CFO Gary van Dyk’s share trades

DateDirectorTypeNumber Price Cashflow
08-Dec-22Gary van DykBuy (Option)6000000R0.75-R4 521 000.00
31-Aug-22Gary van DykSell1000000R2.15 R2 150 000.00
31-Aug-22Gary van DykSell4000000R2.05 R8 200 000.00
29-Aug-22Gary van DykBuy (Option)4000000R0.75-R3 014 000.00
04-Jan-22Gary van DykSell610000R2.99 R1 823 900.00
24-Nov-21Gary van DykSell80000R2.35 R187 800.00
23-Nov-21Gary van DykSell251000R2.40 R601 420.10
22-Nov-21Gary van DykSell59000R2.47 R145 730.00
10-Nov-21Gary van DykBuy (Option)2000000R0.35-R702 000.00
17-Aug-21Gary van DykSell2200000R1.40 R3 080 000.00
19-Feb-21Gary van DykSell500000R0.86 R427 700.00
17-Dec-20Gary van DykBuy (Option)7000000R0.19-R1 337 000.00
05-Feb-20Gary van DykSell300000R0.37 R111 600.00
22-Jan-20Gary van DykSell32000R0.40 R12 800.00
21-Jan-20Gary van DykSell54000R0.41 R22 140.00
06-Dec-19Gary van DykBuy (Option)5500000R0.31-R1 705 000.00
12-Aug-19Gary van DykSell500000R0.28 R140 000.00
26-Jun-19Gary van DykSell1000000R0.27 R270 000.00
07-May-19Gary van DykSell1200000R0.29 R348 000.00
11-Dec-15Gary van DykBuy (Option)10000000R0.76-R7 600 000.00
26-Aug-15Gary van DykBuy (Option)1968500R0.27-R531 495.00
19-Feb-15Gary van DykBuy (Option)6550000R0.12-R786 000.00
13-Nov-14Gary van DykBuy (Option)2000000R0.38-R760 000.00
03-Feb-14Gary van DykOff market buy5000000R0.22-R1 100 000.00


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