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:
Metcash Limited (ASX: MTS)
A change of director’s interest notice reveals non-executive chairman Robert Murray has picked up shares of the wholesale distributor through an on-market trade this week. Mr Murray bought 20,000 shares at an average of $2.7965 per share or a total consideration of $55,929.42. This lifted the non-exec chairman’s holding to a total of 84,005 shares. With its shares trading within sight of their 52-week low, it appears that Mr Murray sees a lot of value in them at this level.
NEXTDC Ltd (ASX: NXT)
According to a change of director’s interest notice, non-executive director Sharon Warburton has seized on recent share price weakness to pick up 7,000 shares through an on-market trade. Warburton paid an average price of $6.29 per share, equating to a total consideration of over $44,000. This lifted her holding in the data centre operator to a total of 39,202 shares. While it might be best to wait for the market to settle again, I do think the recent tech selloff could have created a buying opportunity with NEXTDC shares.
Star Entertainment Group Ltd (ASX: SGR)
A change of director’s interest notice reveals that non-executive director Richard Sheppard dipped into the market this week to buy 25,000 shares of the casino and resort operator through an on-market trade. Mr Sheppard paid a total of $137,578.13 or $5.50 per share. This purchase brought his total holding to 125,000 shares. I thought Star delivered a strong result in FY 2018 and could be worth a closer look.
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Motley Fool contributor James Mickleboro owns shares of NEXTDC Limited. 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.