Sam Morgan loads up on Xero shares

The Trade Me founder is backing his own horse. Today Xero director Sam Morgan disclosed the purchase of 1.1 million shares in the company on April 6, bringing his total holding to 2.91 million or around 5% of the company.

Mr Morgan paid $1 million or 90 cents a share for his parcel of 1,111,111. Xero's shares closed at $1.15 on the day of his purchase.

A second insider also backed up the truck, with Graham Shaw buying $450,000 worth of shares.

Xero’s shares (NZX: XRO) have been on a tear recently, rising from beneath 70 cents at the start of the year to $1.30 yesterday. Today, buoyed by news of the insider buy, they climbed again, to $1.38. After a long time in the doldrums, the stock is now above its IPO price.

The rise, which defies the potentially diluting impact of a recent $23 million issue, has come on the back of a slew of good news for the online accounting software company, whose SaaS (software-as-a-service) model is gaining currency throughout the computer industry.

Xero also recently inked deals with all the major Australian banks to supply feeds to its software, and was named as one of the founding partners in Telstra’s T-Suite SaaS service - a development that chief executive Rod Drury says will provide his company with instant credibility in the Australian market, plus instant access to 700,000 small business customers.

Mr Drury is also hoping for expansion further afield through the recent appointment of Dell global vice president of enterprise sales Andy Lark to its board. Mr Lark, who is responsible for the world’s largest e-commerce site,, has potential to help push Xero into the North American market.

Yet all the stars in the Xero universe are perfectly aligned. Mr Drury is not expecting profitability until his company lands its 15,000 customers (it's currently around 6000), and the company is still only half way to achieving the average revenue per user (ARPU) of $70 promised in its prospectus.

2 · Got a question about this story? Leave it in Comments & Questions below.

This article is tagged with the following keywords. Find out more about MyNBR Tags

2 Comments & Questions

Commenter icon key: Subscriber Verified

He also bought white Golf GTI on TradeMe a couple of weeks ago. Paid approx $30k if anyone's interested, he outbid me...

  • 0
  • 0

@Kaper - face it, you were never going to win that car when bidding against someone with 250 million cash sitting in the bank.

  • 0
  • 0

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot


Sym Price Change
USD 0.7167 -0.0015 -0.21%
AUD 0.9143 -0.0017 -0.19%
EUR 0.6085 -0.0007 -0.11%
GBP 0.5413 -0.0009 -0.17%
HKD 5.5966 -0.0107 -0.19%
JPY 80.3140 -0.2730 -0.34%


Commodity Price Change Time
Gold Index 1301.2 -8.600 2017-10-16T00:
Oil Brent 57.6 0.670 2017-10-16T00:
Oil Nymex 52.1 0.420 2017-10-16T00:
Silver Index 17.3 -0.071 2017-10-16T00:


Symbol Open High Last %
NZX 50 8090.7 8094.6 8090.7 0.04%
NASDAQ 6622.6 6632.5 6605.8 0.28%
DAX 13017.2 13026.5 12991.9 0.09%
DJI 22892.9 22960.1 22871.7 0.37%
FTSE 7535.4 7557.0 7535.4 -0.11%
HKSE 28777.2 28777.2 28692.8 0.05%
NI225 21352.2 21394.0 21255.6 0.04%
ASX 5846.8 5894.9 5846.8 0.68%