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:
Adairs Ltd (ASX: ADH)
According to a change of director’s interest notice, the independent chairman and non-executive director of this home furnishings retailer has been buying shares on market this month. Michael Butler picked up 35,866 shares on market for a total consideration of $56,956.06. This equates to an average of $1.59 per share and lifts Mr Butler’s holding in the company to a sizeable 449,724 shares. Adairs’ shares have come under pressure this year due to the housing market downturn, but this director appears confident in its prospects. I think Adairs’ shares are great value at the current level.
Bailador Technology Investments Ltd (ASX: BTI)
A change of director’s interest notice reveals that the co-founder and managing partner of this technology-focused investment company has been buying more shares on-market. According to the notice, Paul Wilson picked up a further 100,000 ordinary shares on April 15 for a total consideration of $81,408. This equates to a price of 81.4 cents per share. This latest purchase brought Mr Wilson’s stake in the company up to just under 3.9 million shares. The director may believe that Bailador Technology Investments’ shares are dirt cheap at this level considering last week the company revealed that its NTA per share post-tax was $1.11.
Blackmores Limited (ASX: BKL)
According to a change of director’s interest notice, newly appointed non-executive director Christine Holman has taken advantage of the decline in this health supplements company’s share price this week to pick up her first shares. On Wednesday Holman bought 1,500 Blackmores shares on market for a total consideration of $133,783.11. This works out to be an average price of approximately $89.19 per share.
I intend to wait for Blackmores performance to improve before investing. Until then, this hot small cap stock could be a great alternative for investors.
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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 Blackmores Limited. 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.