Neil Woodford has bought more shares in the AA, the day after the breakdown cover group saw its stock price slide 30 per cent following a cut to the dividend and a profit downgrade to fund more technology investment.
Mr Woodford, the company’s largest shareholder, increased his holding in the group from 14.21 per cent to 15.03 per cent, with a total of 610,807,568 shares, according to a filing from the AA on Thursday.
The business floated in 2014 at a share price of 250p, but the stock has since lost two-thirds of its value, partly due to the sudden departure of its former executive chairman following an altercation, but also because of concerns over its business model.
On Wednesday the company slashed the dividend from 9p to 2p and said profits would fall 13 per cent this year as it invests in telematics technology and growing its insurance business.
Shares fell 30 per cent to 82p, though on Thursday had regained 6 per cent to 88.6p.
Mr Woodford declined to comment when contacted by the FT before the share-buying announcement.
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