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:
InvoCare Limited (ASX: IVC)
A change of director's interest notice reveals that this funeral company's non-executive director, Jacqueline McArthur, has been buying shares on-market this week. According to the notice, Ms McArthur doubled her holding in the company with the purchase of 2,000 shares through an on-market trade on June 3. The director paid an average of $15.52 per share, which works out to be a total consideration of approximately $31,000. The InvoCare share price is up 48% this year thanks to an improvement in trading conditions. Despite this strong gain, Ms McArthur still appears to see value in them.
Platinum Asset Management Ltd (ASX: PTM)
This asset manager's independent non-executive director, Tim Trumper, has taken advantage of recent share price weakness to buy its shares. According to a change of director's interest notice, Mr Trumper bought 18,900 shares through an on-market trade on May 28. The notice reveals that the director paid a total consideration of $89,904, which equates to an average of just under $4.76 per share. The Platinum share price has fallen 27% over the last 12 months and is trading within sight of a 52-week low.
Worleyparsons Limited (ASX: WOR)
One of this engineering company's non-executive directors has been buying shares on-market recently. According to a change of director's interest notice, Sharon Warburton bought 10,000 shares through an on-market trade on May 28. Ms Warburton paid an average of $13.30 per share, equating to a total consideration of $133,000. This could prove to be a bargain buy if the Worleyparsons share price reaches the price target given to it by Credit Suisse this week. On Thursday its analysts retained their outperform rating and $18.20 price target on the company's shares.
