Insiders have been buying these ASX shares

At the end of each week I like to look at which shares have experienced insider buying.

This is because insider buying is generally seen as a bullish indicator as few know a company, its industry, prospects, and true value better than its own directors.

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

GUD Holdings Limited (ASX: GUD)

According to a change of director’s interest notice, this conglomerate’s chairman Mark Smith has picked up a total of 8,000 shares through a series of on-market trades over the last few days. The total consideration was $120,460 or approximately $15.06 per share. This follows a purchase made by Mr Smith at the start of the month, which I feel is an indication that this director has a lot of confidence in the company’s long-term prospects.

Neuren Pharmaceuticals Ltd (ASX: NEU)

Two change of director’s interest notices reveal that non-executive directors Dr Jenny Harry and Patrick Davies have dipped into the market over the last few days. Dr Harry picked up 14,084 shares through an on-market trade for a total consideration of $20,584, whereas Mr Davies snapped up a sizeable 69,646 shares through a series of on-market trades for a total consideration of $100,001. This meant the two directors paid an average price of $1.46 and $1.44 per share, respectively. With Neuren Pharmaceuticals’ shares down significantly from their 52-week high of $3.60, it appears both directors see a lot of value in them at this level. Though, this hasn’t been enough to support its share price this week. The company’s shares are down 12% to $1.32 week-to-date.

Praemium Ltd (ASX: PPS)

According to a change of director’s interest notice, this fintech company’s chairman Barry Lewin picked up a large number of shares on Tuesday. The notice shows that Mr Lewin bought 100,000 shares through an on-market trade for an average price of 90.65 cents per share or a total consideration of $90,650. On Monday Praemium reported its full-year results which revealed a 22% increase in revenue and other income to $43.2 million and a 40% jump in underlying EBITDA to $8.8 million. A 35% increase in funds under administration to $8.3 billion drove the strong result. Judging by his purchase, Mr Lewin appears to be confident that FY 2019 will be another positive year for the fast-growing 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.

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