Insiders have been buying these ASX shares

Insiders have been buying the shares of Eclipx Group Ltd (ASX:ECX) and two others this week. Should you?

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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 few should know a company, its prospects, and true value better than its own directors.

Three shares which have been experiencing meaningful insider buying recently are listed below:

Eclipx Group Ltd (ASX: ECX)

According to a change of director's interest notice, this fleet management company's deputy chief executive officer and chief financial officer, Garry McLennan, has topped up his considerable holding. McLennan bought 100,000 shares at $3.15 per share through an on-market trade last Friday. The Eclipx share price has been trading close to a 52-week low recently and at a level that McLennan certainly seems to believe is attractive. Which isn't a surprise given that last week Eclipx reiterated its cash earnings per share growth guidance of 10% to 12% on the 25.1 cents achieved in FY 2017. This means its shares are changing hands at a lowly 12x full-year cash earnings today.

Medical Developments International Ltd (ASX: MVP)

A change of director's interest notice reveals that this healthcare company's CEO, David Williams, has picked up a total of 461,009 shares through two on-market trades this week at an average of $6.09 per share. Mr Williams swooped in after Medical Developments International's shares plunged lower following the release of an underwhelming sales update. Just two months ago Williams offloaded 2 million shares at $7.50 apiece through an off-market block trade.

National Veterinary Care Ltd (ASX: NVL)

This veterinary company has seen two of its directors snap up shares this week. According to two change of director's interest notices, non-executive directors Ms Susan Forrester and Dr Stephen Coles picked up 4,468 and 20,000 shares, respectively, last Friday. With its shares notably lower year-to-date, it appears that the two directors have seen an opportunity to top up their holdings at a good price. These share purchases may ease the nerves of shareholders after rival Greencross Limited (ASX: GXL) recently reported weak trading from in its veterinary clinics.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of NATVETCARE FPO. 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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