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:
Helloworld Travel Ltd (ASX: HLO)
According to a change of director’s interest notice, this travel company’s chief executive officer and managing director has been buying shares on-market this month. The notice reveals that Andrew Burnes picked up 10,000 shares through an on-market on October 2 for a total of $46,647.50. This equates to an average of ~$4.66 per share. Mr Burnes now has a total of 10,470,531 shares held directly and 18,530,105 shares held indirectly.
Nanosonics Ltd (ASX: NAN)
A change of director’s interest notice reveals that one of this infection control specialists’ non-executive directors has been buying shares on-market this week. According to the notice, on October 8 Geoff Wilson bought 3,237 ordinary shares for a total consideration of $19,784.70, which equates to an average of $6.11 per share. Just to clarify, this director is not the Geoff Wilson from WAM Capital Limited (ASX: WAM).
Sealink Travel Group Ltd (ASX: SLK)
Another travel company which has experienced meaningful insider buying this month is SeaLink. According to a change of director’s interest notice, its non-executive director Fiona Hele has doubled her holding through an on-market purchase on October 9. Hele picked up 10,000 shares for an average of $4.62 per share, which equates to a total consideration of $46,200. Earlier this week SeaLink announced plans to acquire Transit Systems Group for an enterprise value of $635 million. Management believes the acquisition will be transformational. Based on this purchase, it appears as though this director is confident that the acquisition will be a success.
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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 Nanosonics Limited. The Motley Fool Australia owns shares of and has recommended Helloworld Limited. The Motley Fool Australia has recommended Nanosonics 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.