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:
Australian Agricultural Company Ltd (ASX: AAC)
According to a change of director’s interest notice, CEO Hugh Killen has picked up 83,000 Australian Agricultural Company shares through an on-market trade this week. Mr Killen paid an average price of $1.196 per share for a total consideration of $99,813.97. This purchase could certainly improve investor sentiment after a tough 12 months for the beef and agricultural products provider. Last week the company posted a statutory EBITDA loss of $35.3 million for FY 2018, compared to $133.2 million profit in FY 2017. It is worth noting also that there have been rumours of a takeover approach floating around.
Greencross Limited (ASX: GXL)
A change of director’s interest notice reveals that this integrated pet care company’s new CEO has made a sizeable purchase of shares. According to the note, Mr Simon Hickey picked up 58,112 shares through an on-market trade on Friday of last week. The former Qantas Airways Limited (ASX: QAN) executive paid a total of $249,881.60 for the shares. It certainly was good timing on his part. Just a few days later the company’s shares rallied higher amid speculation that it could be a takeover target. While this is a positive, I think investors ought to wait for the company’s results before deciding whether to invest.
WAM Leaders Ltd (ASX: WLE)
According to a change of director’s interest notice, WAM Capital Limited (ASX: WAM) founder and chairman Geoff Wilson has been buying shares in WAM Leaders. Mr Wilson picked up a total of 187,608 shares over the course of three days through on-market trades. The sizeable purchase cost a total of $214,409.31 and lifted Mr Wilson’s holding in WAM Leaders to 5,296,559 shares. While it isn’t my first pick of the WAM collection, it could be worth a closer look after this spot of insider buying.
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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 Greencross 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.