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Insiders have been buying these ASX shares. Should you?

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.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Crown Resorts Limited. 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.

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