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:
Accent Group Ltd (ASX: AX1)
A change of director's interest notice reveals that the co-founder and non-executive director of this footwear retailer, Michael Hapgood, has sold a large number of shares this month. According to the notice, Mr Hapgood sold 131,425 shares through an on-market trade on 14 May. He received an average of ~$1.58 per share or a total consideration of $208,087.22. While this is a sizeable sale, Hapgood remains a major shareholder with a total of 14,440,000 shares.
Credit Corp Group Limited (ASX: CCP)
According to a change of director's interest notice, this debt collector's non-executive director, Don McLay, has been selling shares on-market again. The notice reveals that Torres Industries, of which Mr McLay is chairman, offloaded a further 10,773 shares through an on-market trade on 22 May. The sale was made at an average price of $23.59 per share, which equates to a total consideration of $254,131.50. This sale has reduced Mr McLay's total interest down to 1,343,497 shares.
Megaport Ltd (ASX: MP1)
A change of director's interest notice reveals that Megaport's founder and chairman, Bevan Slattery, has sold down his stake in the company. According to the notice, Mr Slattery has sold 3.3 million shares (the equivalent of 2.46% of the company's issued capital) to institutional investors via UBS. The sale was underwritten at a price of $5.11 per share, equating to a total consideration of approximately $16.9 million. Mr Slattery continues to have a significant shareholding of 18,162,607 shares and revealed that the sale was made to fund the early stage development of two new technology ventures.
