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:
Air New Zealand Limited (ASX: AIZ)
A change of director's interest notice reveals that chairman, Dame Therese Walsh, has been buying the airline operator's shares recently. According to the notice, Dame Walsh picked up 20,000 shares through an on-market trade on April 1. The chairman paid a total of NZ$51,600 for the shares, bringing her total holding up to 85,000 shares. The Air New Zealand share price is down 14% year to date and trading at a level that its chairman appears to believe is attractive.
Bailador Technology Investments Ltd (ASX: BTI)
According to a change of director's interest notice, the co-founder and managing partner of this technology-focused investment company has been buying shares through an on-market trade. The notice reveals that Paul Wilson picked up 160,289 ordinary shares on March 29 for a total consideration of $127,669, which equates to a price of 79.6 cents per share. This purchase brought Mr Wilson's stake in the company up to approximately 3.8 million shares. Last month the company revealed that its NTA per share post-tax was $1.10, which is significantly higher than Mr Wilson's buy price.
Smartgroup Corporation Ltd (ASX: SIQ)
Although its CEO has been selling, a number of executives have been buying this salary packaging and fleet management services provider's shares this week. Two of the biggest purchases came from non-executive directors Andrew Bolam and Michael Carapiet. According to the change of director's interest notices, Mr Bolam picked up 55,000 shares for an average of $7.43 per share and Mr Carapiet purchased 150,000 shares at an average of $7.48 per share. The Smartgroup share price is currently trading at $7.64, putting it within sight of its 52-week low of $7.26.
