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:
Ardent Leisure Ltd (ASX: ALG)
According to a change of director's interest notice, the non-executive chairman of this embattled entertainment company has dipped into the market again. The notice reveals that Gary Weiss has added to his indirect interest with the purchase of 1,400,000 shares at $1.24 per share or a total consideration of $1.76 million through an on market trade on April 17. This follows a purchase of 1,864,397 shares at $1.18 per share last month and brings his total interest to 58.76 million shares. The Dreamworld operator's shares are down 14% this year and at a level that this director appears to believe is attractive.
Flight Centre Travel Group Ltd (ASX: FLT)
One of this travel agent's non-executive directors has seized on recent share price weakness to top up his holding. According to a change of director's interest notice, non-executive director Robert Baker bought 1,000 shares through an on-market trade for a total consideration of $38,530 on April 30. A couple of days earlier Flight Centre's shares were hammered after it downgraded its profit guidance due to weakness in the Australian Leisure business. It appears as though Mr Baker thinks the selling was overdone. This purchase lifted the director's holding to 3,500 shares.
Galaxy Resources Limited (ASX: GXY)
This beaten down lithium miner has experienced a spot of insider buying recently. A change of director's interest notice reveals that non-executive director John Turner picked up 30,000 shares through an on-market trade on April. Mr Turner paid a total consideration of $49,500, equating to an average of $1.65 per share. This purchase lifted the director's holding to a total of 55,000 shares. The Galaxy share price is down a massive 53% over the last 12 months due to a sharp decline in lithium prices.
