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:
Citadel Group Ltd (ASX: CGL)
A number of this secure enterprise information management company's directors have been buying shares on market this week. According to a series of change of director's interest notices, independent non-executive director Peter Leahy, non-executive director Mark McConnell, and chairman Kevin McCann all bought shares through on-market trades on May 28. Mr McCann made the largest purchase – 10,000 shares for a total of $44,221. It appears as though the board believe the Citadel share price decline this year is a buying opportunity.
Commonwealth Bank of Australia (ASX: CBA)
A change of director's interest notice reveals that this banking giant's independent non-executive director, Anne Templeman-Jones, has purchased shares this week. According to the notice, Templeman-Jones picked up 192 shares for an average of $78.09 per share through an on-market trade on May 27. This equates to a total consideration of just under $15,000 and brought her holding in the company to a total of 1038 shares (both direct and indirect).
OZ Minerals Limited (ASX: OZL)
A non-executive director of this leading copper miner has followed the lead of its chairman and bought shares on-market this week. Last week chairman Rebecca McGrath picked up 4,900 OZ Minerals shares, whereas this week Ms Tonianne Dwyer has snapped up 5,000 shares through an on-market trade on Wednesday. Ms Dwyer paid an average of $9.29 per share or a total consideration of $46,450. This brought her holding up to a total of 15,000 shares. It appears as though the OZ Minerals board sees a lot of value in the company's shares at the current level.
