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 intrinsic value better than its own directors.
Three shares which have reported meaningful insider buying this week are listed below:
Class Ltd (ASX: CL1)
According to a change of director's interest notice, this SMSF administration platform provider has experienced some material insider buying recently. The note reveals that independent non-executive director, Ms Nicolette Rubinsztein, picked up 107,864 shares through on-market trades on March 13 and March 14. Ms Rubinsztein paid a total of $174,698.69 for the shares, which equates to $1.62 per share. With its shares losing a third of their value over the last 12 months, it appears as though this director thinks they have been oversold.
Coles Group Ltd (ASX: COL)
Insiders have been buying this supermarket giant's shares once again. A change of director's interest notice reveals that the company's independent non-executive director, Jacqueline Chow, bought 20,000 shares through an on-market trade on March 14. The director paid an average of $11.27 for the shares, equating to a total consideration of approximately $225,000. Last week another notice revealed that the company's CEO picked up 40,000 shares this month for just under $460,000. It looks as though the Coles management team believes its shares are undervalued after a recent selloff.
Myer Holdings Ltd (ASX: MYR)
Another company that has experienced further insider buying is this department store operator. Earlier this month Myer's CEO, John King, added a further 150,000 shares to his holding via an on-market trade. Now it is the turn of independent non-executive director Lyndsey Cattermole to pick up shares. According to a change of director's interest notice, Cattermole snapped up 363,236 shares for a total of $199,776.89 through an on-market trade on March 19.
