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.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Macquarie Group 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.