Every Friday I like to look at which ASX shares have been experiencing insider buying. I think keeping tabs on insider buying is important because it is often seen 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:
Liquefied Natural Gas Ltd (ASX: LNG)
The liquefied natural gas company has experienced even more insider buying this week. According to two change of director’s interest notices, both Philip Moeller and Leeanne Bond have been snapping up shares over the last few days. The former picked up 20,000 ADRs (the equivalent of 80,000 ordinary shares) in an over the counter market purchase. Whereas the latter picked up 64,000 shares through on-market trades for an average price of approximately 61 cents per share. This follows rampant insider buying last week and could indicate that insiders feel the company is being undervalued by the market.
Sigma Healthcare Ltd (ASX: SIG)
A change of director’s interest notice reveals that non-executive director Kathryn Spargo picked up 40,000 shares through an on-market trade on Friday of last week at a price of 46.5 cents per share. This brought Ms Spargo’s holding up to a total of 169,728 shares. The director appears to see value in the embattled pharmacy chain operator and distributor’s shares after the significant decline over the last 12 months. While I do think its shares look cheap at present, I’m concerned that company could find it impossible to fill the gap in its earnings from the loss of a major supply contract.
United Overseas Australia Limited (ASX: UOS)
According to a change of director’s interest notice, executive chairman Kong Chong Soon has acquired 2,354,000 shares in the company for almost $1.5 million through an off-market trade. These are the only shares that Kong Chong Soon holds in the Malaysia-based real estate development company.
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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.