Once a week I like to look at which shares have been experiencing insider buying.
This is because insider buying is often regarded as a bullish indicator as nobody should theoretically know a company and its prospects better than its own directors.
Three shares which have been experiencing meaningful insider buying recently are listed below:
BWX Ltd (ASX: BWX)
According to a change of director's interests filing, John Humble, the CEO of BWX, picked up 164,754 shares at an average price of $4.859 per share through an on-market trade on Friday of last week. This $800,000 purchase increased Mr Humble's ownership to a total of 10,750,000 shares of the company behind the Sukin skincare range. BWX's shares were down an incredible 41% from their 52-week high at the time of Humble's purchase, which could be an indication that he feels they have bottomed now. I think BWX is well worth a closer look at these levels.
OZ Minerals Limited (ASX: OZL)
Independent non-executive director Peter Tomsett dipped into the market recently to pick up some of this copper miner's shares. A change of director's interests filing reveals that Mr Tomsett bought 10,000 shares through an on-market trade for a combined price of $93,400. With the global economy tipped to growth strongly over the next couple of years, Mr Tomsett appears to believe that OZ Minerals will be in a strong position to profit from favourable copper prices and its acquisition plans.
Scentre Group (ASX: SCG)
A change of director's interests filing reveals that non-executive director Aliza Knox has been buying shares of the retail property manager. According to the release, Ms Knox picked up 25,500 securities at an average price of $3.875 per security through an on-market trade this week. This increased her holding in the company by almost 58% to 60,400 securities. This could arguably be a good time for an investment. Earlier this month equity analysts at Macquarie slapped an outperform rating and $4.43 price target on Scentre's shares.
