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:
Corporate Travel Management Ltd (ASX: CTD)
The chairman of this corporate travel specialist has been buying the company's shares on-market this week. According to a change of director's interest notice, Mr Ewen Crouch AM picked up 2,500 shares for a total of $60,975 on March 25. This works out to be an average of $24.39 per share. Incidentally, Mr Crouch made the purchase on his first day in the job after replacing former chairman Tony Bellas.
Nufarm Limited (ASX: NUF)
A member of the board of this crop protection and seed specialist company has taken advantage of its recent share price weakness to top up his position. According to a change of director's interest notice, Francis Ford has picked up a total of 18,095 shares through on-market trades on March 21 and March 22. Mr Ford paid an average of approximately $4.47 per share or a total consideration of $80,862.90. This looks like it could have been a smart move. Earlier this week Morgans upgraded Nufarm's shares to an add rating with a $6.30 price target.
Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)
A change of director's interest notice reveals that the chairman of this investment house, Mr Robert D Millner, has bought a significant number of shares this week. According to the notice, Mr Millner has snapped up 50,000 shares for a total consideration of $1,352,604. This equates to an average price of approximately $27.05 per share and brings the chairman's holding up to a sizeable 267,152 shares (direct) and 19,247,941 shares (indirect). The WHSP share price has fallen 17% from its 52-week high and to a level that Mr Millner appears to believe is attractive.
