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.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Platinum Investment Management Limited. The Motley Fool Australia has recommended InvoCare 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.