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:
Estia Health Ltd (ASX: EHE)
According to a change of director's interest notice, one of this aged care operator's non-executive directors has been buying shares recently. The notice reveals that Karen Penrose picked up 3,500 shares through an on-market trade on November 13. The executive paid an average of $2.83 per share. This purchase lifted Penrose's holding to a total of 22,333 Estia Health shares. It appears as though this director still sees a lot of value in Estia Health's shares despite their 27%+ gain so far in 2019.
Flight Centre Travel Group Ltd (ASX: FLT)
A couple of change of director's interest notices show that this travel agent giant has experienced a bout of insider buying. According to the notices, John Eales and Colette Garnsey have both bought shares through on-market trades this week. On November 11 John Eales picked up 2,000 shares for a total consideration of $79,571.95. Whereas, on November 14, Colette Garnsey bought 1,250 shares for a total consideration $50,825.87. This brought their Flight Centre holdings up to 5,000 and 4,250 shares, respectively.
Pendal Group Ltd (ASX: PDL)
One of this investment management company's non-executive directors has been buying shares this week. According to a change of director's interest notice, Sally Collier picked up 10,000 shares through an on-market trade on November 11. Collier paid an average of $7.925 per share, which equates to a total consideration of $79,250. This purchase lifted the non-executive director's holding to a total of 24,000 Pendal shares.
