Every so often 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.
A number of shares have reported meaningful insider buying this week. Here are a few that caught my eye:
Advance NanoTek Ltd (ASX: ANO)
According to a change of director’s interest notice, one of this advanced materials company’s non-executive directors has been buying shares on-market this month. The notice reveals that Lev Mizikovsky has made two sizeable purchases totalling approximately $250,000. Mr Mizikovsky picked up 33,818 shares on September 5 for $150,088.30 and 22,721 shares on September 9 for $101,756.05. This brought the director’s holding to a total of 26,810,206 shares. Advance NanoTek’s shares have lost over a third of their value since peaking at $7.85 in June. This director may believe they have fallen too far.
Rural Funds Group (ASX: RFF)
A non-executive director of this embattled agriculture-focused property fund has taken advantage of recent share price weakness to top up his holding. According to a change of director’s interest notice, Guy Paynter picked up 100,000 shares through an on-market trade on September 6 for an average of $1.95 per share or a total consideration of $195,000. This brought Mr Paynter’s holding up to a total of 1,559,104 shares. Rural Funds has been targeted by an international short seller recently that declared its shares as worthless, but this director certainly doesn’t appear to agree with this view.
Telstra Corporation Ltd (ASX: TLS)
This telco giant’s non-executive director, Roy Chestnutt, has been buying the company’s shares this month. According to a change of director’s interest notice, Mr Chestnutt picked up 27,000 shares for a total consideration of $97,051.50. This equates to an average of ~$3.59 per share. This could prove to be good timing from the director as this week Goldman Sachs added Telstra to its conviction buy list.
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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Advance NanoTek Limited. The Motley Fool Australia owns shares of and has recommended RURALFUNDS STAPLED and Telstra 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.