Once a week I like to look at which ASX shares have been experiencing insider buying.
This is because insider buying is often regarded as a bullish indicator as nobody should in theory know a company, its prospects, and its true value better than its own directors.
Three shares which have been experiencing meaningful insider buying recently are listed below:
Cann Group Ltd (ASX: CAN)
According to a change of director’s interest notice, non-executive director Geoffrey Pearce picked up 73,483 additional shares in the medicinal cannabis company through an on-market trade for $216,505. This has lifted Mr Pearce’s stake in the company to 1,554,195 shares. He may believe that Cann Group is poised to be a big winner from recent regulation changes by the Federal Government to allow medicinal cannabis exports. Cann has significant production capabilities at its facilities in Victoria.
iSelect Ltd (ASX: ISU)
This price comparison company’s shares have crumbled this week after a shockingly bad trading update revealed a significant cut to its full-year guidance. Chairman and independent non-executive director Chris Knoblanche has taken advantage of this share price decline to pick up 100,000 shares on-market for $47,500. According to the notice, this increases his holding to 343,091 shares. Mr Knoblanche is certainly braver than I am. After that recent update I’m staying well clear of iSelect even after its sizeable decline.
Link Administration Holdings Ltd (ASX: LNK)
A change of director’s interest notice reveals that independent chair, Michael Carapiet, has made two large purchases of shares on-market this month. Mr Carapiet bought a total of 72,000 shares for approximately $580,000. He appears to have snapped up shares following a spot of share price weakness after the company raised $300 million at $8.75 earlier this month. Those funds will be used to provide Link Group with balance sheet flexibility to continue to pursue strategic opportunities.
Where to invest $1,000 right now
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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.
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