Once a week I like to look at which shares have been experiencing insider buying and insider selling.
Insider buying is often regarded as a bullish indicator as nobody should theoretically know a company and its prospects better than its own directors.
For the same reasons insider selling is more often than not seen as a bearish indicator.
Three shares which have been experiencing meaningful insider buying recently are listed below:
Aristocrat Leisure Limited (ASX: ALL)
A change of change of director’s interest notice released on Tuesday reveals that non-executive director Sylvia Couder has picked up her first shares in the company this week. Mrs Couder bought 6,050 shares on-market for an estimated price of US$109,339.15 according to the release. This certainly could be good timing by Mrs Couder, this morning Goldman Sachs added Aristocrat Leisure to its conviction buy list with a price target of $30.70 on its shares.
Donaco International Ltd (ASX: DNA)
This week the casino and resort operator’s managing director and chief executive officer, Joey Lim Keong Yew, has taken advantage of Donaco’s share price decline and topped up his considerable holding. According to the change of director’s interest notice, Mr Lim has picked up 40,000 shares through an on-market trade at 24 cents apiece. This leaves him with a direct holding of 37,613,572 ordinary shares and an indirect holding of 164,253,225 ordinary shares. Donaco’s shares are down 42% over the last 12 months.
Nanosonics Ltd (ASX: NAN)
According to a change of director’s interest notice released this morning, non-executive director Steven Sargent has bought 20,000 shares through an on-market trade for approximately $48,600. This has increased Mr Sargent’s indirect holding to 107,000 ordinary shares. This purchase may go some way to settling the nerves of shareholders. In recent weeks Nanosonics has experienced a surge in short interest, so having a director show his confidence in the company by buying shares on-market is a big positive. According to the most recent data from ASIC, the infection control company is the eighth most shorted share on the ASX with 11.7% of its shares held short.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Nanosonics Limited. 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.