Insider buying is often regarded as a bullish indicator as few people should know a company better than its own directors.
The theory is that if they have the confidence to buy shares, it could be a sign that things are going well and they expect them to appreciate in value.
Conversely, when directors sell shares it is often regarded as a bearish indicator as you'd be unlikely to sell shares if you felt they were about to increase in value.
With that in mind, here are three shares which have recently experienced notable insider selling:
HUB24 Ltd (ASX: HUB)
According to a change of director's interest notice, HUB24's chairman and non-executive director, Bruce Higgins, offloaded a large number of shares earlier this week. The notice reveals that Mr Higgins sold 200,000 shares through an on-market trade on May 6 for an average of $15.15 per share or a total consideration of just over $3 million. Whilst this is a sizeable sale, it is worth noting that the company's chairman still has plenty of skin in the game with 796,811 HUB24 shares.
Treasury Wine Estates Ltd (ASX: TWE)
A change of director's interest notice reveals that this wine company's chief executive officer, Michael Clarke, has sold a large number of shares on-market this month. According to the note, Mr Clarke sold 400,000 ordinary shares on-market between May 1 and May 3. He received a total consideration of just under $6.9 million for the shares. Although it is disappointing to see a CEO sell shares, Mr Clarke still has a large holding after this sale. As per the notice, he has a total interest of 1,795,445 Treasury Wine Estates shares and 1,252,451 performance rights.
WiseTech Global Ltd (ASX: WTC)
According to a change of director's interest notice, one of this logistics solutions company's independent non-executive directors has sold a significant number of shares this month. According to the notice, Charles Gibbon offloaded a massive 3,250,000 shares on-market on May 2 for an average of $21.75 per share. This works out to be a total consideration of just over $70.5 million. Despite this, Mr Gibbon remains one of the company's largest shareholders with a remaining interest of almost 17.4 million shares. Mr Gibbon recently co-launched a venture capital fund called Shearwater Growth Equity.
