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.
