At the end of each week I like to look at which shares have experienced insider buying.
This is because I believe insider buying is a bullish indicator as few should know a company, its industry, prospects, and true value better than its own directors.
Three shares which have reported meaningful insider buying this week are listed below:
Harvey Norman Holdings Limited (ASX: HVN)
According to three change of director's interest notices, Gerry Harvey has been buying a large number of shares on market this month. Mr Harvey picked up a total of 5,451,226 shares of the retailer for a total consideration of $18,974,192.56. This equates to an average of $3.48 per share, which is a touch higher than Harvey Norman's current share price. The retailer's shares are down 18% year to date and at a level that Mr Harvey appears to see as very attractive.
Myer Holdings Ltd (ASX: MYR)
A change of director's interest notice reveals that this department store operator's new CEO, John King, has picked up 100,000 shares for a total consideration of $43,500 following the release of its full year results. By paying an average of 43.5 cents per share, Mr King certainly has done well out this investment so far. Myer's shares rose 37% on Thursday to 57 cents. I suspect that some short sellers have been closing positions in a hurry, leading to a short squeeze.
WAM Global Ltd (ASX: WGB)
Two change of director's interest notices reveal that chairman Geoff Wilson AO has dipped into the market once again to top up his considerable holding in this investment company. According to the notice, Mr Wilson has picked up a total of 100,000 ordinary shares for a total consideration of $218,479.60. This equates to a price of approximately $2.18 per share and has lifted his entire holding to 2,674,418 ordinary shares. WAM Global's shares have had a slow start to life on the ASX since listing at $2.20 earlier this year.
