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 people ought to 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:
AP Eagers Ltd (ASX: APE)
According to a change of director’s interest notice, non-executive director Nicholas George Politis has been busy buying shares on market this month. Over the course of the last couple of weeks Mr Politis has picked up 49,009 shares through six separate transactions for a price averaging approximately $7.57. The director appears to have seized on recent share price weakness to top up his holding. These purchases brought his holding up to a sizeable 69,233,081 shares.
Domain Holdings Australia Ltd (ASX: DHG)
A change of director’s interest notice reveals that non-executive director Nicholas Falloon has almost doubled his holding in the property listings company with a sizeable purchase of shares this week. According to the notice, Mr Falloon added 50,000 shares at an average price of $2.56 per share through an on-market trade. This brought his holding to a total of 101,239 shares. Mr Falloon appears to have seen value in Domain’s shares after they crashed lower following its recent trading update. It certainly was good timing as Domain’s shares are now trading at $2.67.
Monash IVF Group Ltd (ASX: MVF)
This fertility treatment company’s non-executive director, Richard Hugh Davis, bought 25,773 shares through an on-market trade on Wednesday. Mr Davis paid an average of 96.9 cents or a total consideration of $24,979.87 for the shares, bringing his total holding to 52,799 shares. Monash IVF’s shares have been hammered over the last 12 months and fallen 40% over the period. Mr Davis appears to believe that this has created a buying opportunity.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Monash IVF Group Ltd. 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.