Insiders have been buying these ASX shares

Once a week I like to look at which ASX shares have been experiencing meaningful insider buying.

This is because insider buying is often seen as a bullish indicator as nobody should know a company and its prospects better than its own directors.

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

Altium Limited (ASX: ALU)

According to a change of director’s interest notice, non-executive director Raelene Murphy has dipped into the market to buy more shares in the printed circuit board (PCB) design software provider. Raelene Murphy picked up 2,000 shares through an on-market trade on Friday of last week for a total consideration of $45,180. This lifted her shareholding in the fast-growing tech company by approximately one-third. Considering Altium’s shares have gone gangbusters over the last 12 months and trade on a sky-high earnings multiples, I see this insider buying as a positive development. Clearly Murphy sees enough value in Altium’s shares to put more of her own hard-earned money into them. I think Altium is a great buy and hold investment option due to its exposure to the Internet of Things boom.

Metcash Limited (ASX: MTS)

A change of director’s interest notice reveals that non-executive director Murray Jordan has picked up 19,610 shares in the wholesale distributor through an on-market trade on Friday of last week. Mr Jordan paid $2.58 per share, equating to a total consideration of $50,594. This purchase almost doubled his holding in the company to a total of 42,651 shares. Mr Jordan appears to have seized on recent share price weakness caused by the probable loss of the Drakes South Australia supply contract and a disappointing full-year result. So far it has worked out well for the non-executive director, Metcash’s shares are up 3.5% since his purchase. But given the issue with its Drakes South Australia supply contract and rising competition from Woolworths Group Ltd (ASX: WOW) and Wesfarmers Ltd (ASX: WES) operated Coles, I’m not planning on joining Mr Jordan as a shareholder any time soon.

Bonus tip: The ASX small cap up 285% with no sign of stopping...

One Australian company has developed a state of the art device that's revolutionizing hospitals all over the world. Even better, this device is so profitable that the company rakes in 90% margins. That's a lot of cash. So no wonder the stock's up 285% since 2008 – with no signs of stopping...

To discover the name and code, simply click the link below. You'll discover our expert's #1 medical technology pick... and you can decide for yourself whether to get invested today.

Click here to claim your free report.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Wesfarmers Limited. The Motley Fool Australia owns shares of Altium. 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.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.