Once a week I like to look at which shares have experienced meaningful insider buying.
This is because insider buying is often regarded as a bullish indicator as few people 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:
Amcor Limited (ASX: AMC)
According to a change of director's interest notice, independent non-executive director and chairman Graeme Liebelt has been buying this packaging company's shares this week. The notice reveals that Mr Liebelt has picked up 30,075 shares through an on-market trade at an average of $13.318 per share. This equates to a total consideration of approximately $400,500. With Amcor's shares down 12% year-to-date, it appears that the director thinks they are trading at an attractive level. While it isn't my first choice in the industry, I do think Amcor is worth a closer look.
Crown Resorts Ltd (ASX: CWN)
A change of director's interest notice reveals that Crown's non-executive director Antonia Korsanos has dipped into the market to buy some of the company's shares this week. Mrs Korsanos snapped up 10,000 Crown shares through an on-market trade at an average price of $11.7437 per share. This equates to a total consideration of approximately $117,500. Earlier this week Crown's shares fell to a 52-week low after the release of a trading update which revealed that the casino and resort operator has had a soft start to FY 2019. While its update was disappointing, I think it could be a great long-term investment.
Japara Healthcare Ltd (ASX: JHC)
This aged care operator's non-executive chairman, Linda Bardo Nicholls, has been buying shares on-market this week. A change of director's interest notice reveals that Nicholls snapped up 20,000 shares on November 5 for a total consideration of $24,864. It appears that the non-executive chairman has seized on recent share price weakness to top up her position. Japara's shares crashed lower this year after a Royal Commission into the aged care sector was announced. Although its shares look cheap, I'll be waiting until after the inquiry before considering an investment.
