Insiders have been buying Aristocrat Leisure shares: Should you invest?

The Aristocrat Leisure Limited (ASX:ALL) share price has fallen to a level that has led to three insiders buying shares recently. Should you invest?

a woman

The Aristocrat Leisure Limited (ASX: ALL) share price has had a rollercoaster 12 months.

One year ago the gaming technology company's shares were trading at $22.60. Since then they have been as high as $33.06 and as low as $20.66.

Today its shares are trading closer to the low end of its range at $23.28 and at a level that one of its directors appears to believe is good value.

According to a change of director's interest notice, non-executive director Sylvia Couder picked up 4,600 of the company's shares through an on-market trade on January 3.

This increased Mrs Couder's holding to a total of 10,650 shares and came at a cost of US$70,608.08.

She isn't the only director that has been buying shares. At the end of November non-executive directors Neil Chatfield and Arlene Tansey bought shares through on-market trades.

Chatfield picked up 6,000 shares for a total consideration of approximately $144,000 and his colleague Tansey snapped up 2,000 shares for a total consideration of approximately $50,000.

Should you invest?

I'm a big fan of Aristocrat Leisure and believe that its shares are trading at a very attractive level given its strong track record and positive long-term growth prospects.

The main attraction to the company for me is its Digital segment. This segment gives the company exposure to the quick-growing mobile and social gaming market and the significant recurring revenues on offer in it.

At the end of FY 2018 the company's Digital segment had 8.1 million daily active users each generating 40 U.S. cents of revenue per day.

With the company due to release several new games this year and increase its user acquisition spend significantly, I expect the segment to underpin another year of strong earnings growth in FY 2019.

All in all, I think the selloff of Aristocrat Leisure shares has been overdone and created a buying opportunity for investors.

This could make it a great option along with the likes of fellow growth shares Bellamy's Australia Ltd (ASX: BAL) and Bravura Solutions Ltd (ASX: BVS).

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Bravura Solutions 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.

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