MENU

Insiders have been buying these 3 ASX shares

There are a lot of bullish indicators out there for investors to use, but one of the most important indicators in my opinion is insider buying.

After all, directors should in theory know their companies and how they are performing better than anyone else.

Whilst it isn’t always the case, if directors are confident enough to buy shares then I think it can be interpreted as a sign that things are going well for the company or that they believe it is undervalued.

With that in mind, here are three ASX shares that have experienced insider buying in recent days:

Adelaide Brighton Ltd. (ASX: ABC)

Director Raymond Barro has increased his holding in the building materials company significantly over the last few days. He acquired 19,504,684 shares to increase his holding to a total of 222,051,055 shares or 41% of the company. Approximately 15.5 million of these shares were bought on market, with the remaining 4 million shares being part of a share swap transaction. There is speculation floating around that this increase is not part of a plan to launch a takeover approach, but rather to put off any would-be suitors.

Myob Group Ltd (ASX: MYO)

According to a change of director’s interests notice, the accounting software company’s independent non-executive director and chairman, Justin Milne, has picked up 30,000 shares for $93,900. This lifted Mr Milne’s holding up by 37% to 110,925 shares. MYOB’s shares have fallen sharply over the last 12 months and are trading within a whisker of their 52-week low at present.

Scottish Pacific Group Ltd (ASX: SCO)

Non-executive chairman Patrick Elliott has been buying shares of the debtor finance and trade finance company on-market this month. Mr Elliott picked up 160,000 shares at an average price of $3.13 per share according to its ASX release. This increased his holding in the company by almost 24% to approximately 832,000 shares.

Finally, if I were a director at these companies I would be buying up all the shares I can get hold of.

Top 3 ASX Blue Chips To Buy In 2018

For many, blue chip stocks mean stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool’s in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool’s Top 3 Blue Chip Stocks for 2018."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies moves – we may be forced to remove this report.

Click here to claim your free report.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.