At the end of each week I like to look at which shares have experienced insider buying. This is because I believe insider buying can be a bullish indicator as very few people should know a company and its true value better than its own directors.
Three shares which have reported meaningful insider buying this week are listed below:
Michael Hill International Ltd (ASX: MHJ)
According to a change of director's interest notice, independent non-executive director Janine Allis has been buying this beaten down jewellery retailer's shares this week. During a series of on-market trades at the end of October, Allis picked up a total of 363,815 shares for a total consideration of $245,556.71. This implies an average price of approximately 67.5 cents per share and brought the director's total holding to a sizeable 513,815 shares. Michael Hill's shares were smashed last month after the release of a disappointing trading update.
Super Retail Group Ltd (ASX: SUL)
Two of this retailer's independent non-executive directors have been taking advantage of a recent selloff to top up their respective holdings. Change of director's interest notices reveal that Howard Mowlem picked up 10,000 shares on-market for a total consideration of $74,101.42 and Peter Everingham bought 7,000 shares on-market for a total consideration of $51,749.92. I think this was a smart move and believe Super Retail's shares are attractively priced right now.
Syrah Resources Ltd (ASX: SYR)
According to a change of director's interest notice, Syrah's independent non-executive director, Lisa Bahash, has been buying shares this week. The notice reveals that Bahash picked up 15,583 shares through an on-market trade on Wednesday for an average of $1.595 per share. This equates to a total consideration of $24,855. It appears that this director believes that Syrah is over the worst of its issues now, but time will tell if that is the case.
