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.
A number of shares have reported meaningful insider buying this week. Here are a few that caught my eye:
Credit Corp Group Limited (ASX: CCP)
According to a change of director's interest notice, this receivables company's new non-executive director, John Nesbitt, has been buying shares on-market. The notice reveals that Mr Nesbitt picked up 2,792 shares on October 1 for a total consideration of $83,675. This works out to be an average of $29.97 per share. However, just today its non-executive chairman, Don McLay, revealed that he had sold $555,000 worth of shares the on October 2 through an on-market trade. This is the latest in a series of shares sales.
Syrah Resources Ltd (ASX: SYR)
One of this embattled graphite producer's non-executive directors has been buying shares on market recently. According to a change of director's interest notice, Sara Watts picked up 38,000 shares through an on-market trade on September 26. Ms Watts paid a total of $19,379.47 or an average of 51 cents per share. The Syrah share price has fallen heavily this year following a sharp decline in graphite prices. It appears as though this director may believe its share price has now bottomed.
Webjet Limited (ASX: WEB)
A change of director's interest notice reveals that another insider has been buying this online travel agent's shares. According to the notice, independent non-executive director Don Clarke picked up 3,000 shares through an on-market trade on September 26 for a total consideration of $34,230. This equates to an average of $11.41 per share. It follows the purchase of 25,000 shares for almost $400,000 last week by its CEO John Guscic and a $97,440 purchase of shares by its non-executive director, Brad Holman, a week earlier.
