Director dealings: TalkTalk chairman's stake nears 29%

TalkTalk chairman Charles Dunstone purchased 307,085 ordinary shares in the FTSE 25-listed telecoms provider on Tuesday.

Dunstone, who co-founded the Carphone Warehouse when he began selling mobile phones out of his flat on Marylebone Road back in 1989, acquired the shares at an average price of 111.82p per share, for a total value of £343,385.50.

With the shares down around 70% from their 2015 highs, the billionaire has been mopping up stock. This latest purchase follows another purchase earlier this month and another sizeable chunk bought in July.

Dunstone now owns 28.61% of the company's shares.‎

Just last week, TalkTalk updated the market on its trading for the six months ended 30 September, reporting continued growth in its broadband base and headline revenue, while reiterating its full-year expectations.

TalkTalk's total headline revenue, ex-carrier and off-net, was up 3.9% to £771m, with second-quarter headline revenue 3.7% higher. Statutory revenue declined 0.6% to £822m, which TalkTalk said was primarily due to it exiting its mobile virtual network operator proposition.

Headline EBITDA was £101m, up from £75m in the first half of the previous financial year.

Looking ahead, TalkTalk said its headline EBITDA was expected to remain in line with expectations, along with headline revenue growth, and a stabilising group average revenue per user and ongoing consumer ARPU growth.

It was expecting more than 150,000 broadband net adds for the full year, though it did note that in non-headline items, both profits and cash would be lower year-on-year.

On Tuesday, analysts at Macquarie reiterated their 'outperform' recommendation on the shares - and raised their target price from 150p to 170p - saying the company was "the new route to play fibre in the UK" with market share upside and amid low expectations given how only 21% of sell-side analysts were positive.

Analysts at the Australian broker said: "TalkTalk is the only unregulated fibre builder with both a retail and wholesale proposition and a national brand. The success of the York model is not just measured by the IRR of the fibre project, but also by the market share gains."

As of 1645 GMT, TalkTalk shares had climbed 4.71% to 126.80p.

Top Director Buys

Talktalk Telecom Group (TALK)
Director name: Dunstone,Charles W
Amount purchased: 307,085 @ 111.82p
Value: £343,385.50

(HUR)
Director name: McTiernan,Steven
Amount purchased: 375,000 @ 40.61p
Value: £152,302.12

Amerisur Resources (AMER)
Director name: Clarke,Charles Giles
Amount purchased: 500,000 @ 13.74p
Value: £68,715.00

Saga (SAGA)
Director name: O'Sullivan,Patrick
Amount purchased: 30,000 @ 109.70p
Value: £32,910.00

Top Director Sells