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:
Adelaide Brighton Ltd (ASX: ABC)
According to a change of director's interest notice, this building products company's non-executive director, Ken Scott-Mackenzie, has picked up shares through an on-market trade this week. Mr Scott-Mackenzie bought 15,000 shares on May 14 for an average of $3.46 per share or a total consideration of $51,900. This brought the director's holding up to 20,000 shares. In addition to this, a notice which has just been released reveals that its chairman, Zlatko Todorcevski, has picked up 30,000 shares on-market at an average price of $3.50. Adelaide Brighton's shares fell heavily earlier this month following the release of a profit warning.
Clinuvel Pharmaceuticals Limited (ASX: CUV)
A change of director's interest notice reveals that non-executive director, Dr Karen Agersborg, has bought a number of this biopharmaceutical company's American depositary receipts (ADRs) this month. According to the notice, Dr Agersborg picked up 1,200 of the company's ADRs for an average of US$16.7804 per ADR. This equates to a total consideration of just over US$20,000 and brings her holding up to a total of 2,900 ordinary shares and 1,200 ADRs. Clinuvel's shares have rallied 74% higher since the start of the year, but this director appears to still see value in them.
Macquarie Group Ltd (ASX: MQG)
This investment bank's independent non-executive director, Nicola Wakefield Evans, has dipped into the market twice this month to top up her holding. According to a change of director's interest notice, the director bought 500 shares on May 10 for an average of $125.30 per share and a further 500 shares at $120.41 per share on May 13. This equates to a total consideration of $122,855 and brings her total holding to 6,515 shares. Macquarie's shares have fallen heavily this month after management's guidance for FY 2020 underwhelmed.
