At the end of each 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 intrinsic value better than its own directors.
Three shares which have reported meaningful insider buying this week are listed below:
APA Group (ASX: APA)
According to a change of director’s interest notice, one of this natural gas transportation company’s non-independent directors has been buying shares on-market this week. The notice reveals that Mr James Fazzino has picked up 30,751 shares on March 12 for a total of $300,085.08. The APA share price is up over 15% since the start of the year, but appears to still be trading at a level which Mr Fazzino sees as attractive.
Coles Group Ltd (ASX: COL)
A change of director’s interest notice reveals that this supermarket giant’s CEO has been buying shares on-market again. According to the note, Mr Cain picked up a total of 40,000 shares through a series of trades on March 6 and March 7. The CEO paid a total of approximately $478,000 or $11.45 per share for the purchase. Mr Cain appears to see the recent decline in the Coles share price as a buying opportunity and I would have to agree with him.
Telstra Corporation Ltd (ASX: TLS)
Another change of director’s interest notice reveals that this telco giant has experienced a spot of insider buying this week. According to the notice, Telstra’s non-executive director, Roy Chestnutt, has picked up 43,000 shares through an on-market trade on March 12. The director paid a total of $138,629 for the shares, which works out to be approximately $3.22 on a per share basis. This could be an indication that Mr Chestnutt still sees a lot of value in Telstra’s shares even after they rallied over 17% higher in 2019.
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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 Telstra Limited. The Motley Fool Australia owns shares of COLESGROUP DEF SET. 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.