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:
Domino's Pizza Enterprises Ltd (ASX: DMP)
According to a change of director's interest notice, one of this pizza chain operator's non-executive directors has been buying shares this week. On November 18 Uschi Schreiber bought 1,000 shares through an on-market trade. The director paid an average of $52.5155 per share, which equates to a total consideration of $52,515. These are the first shares that Schreiber has bought since joining the company at the end of last year.
Prospa Group Ltd (ASX: PGL)
A number of this online lender's directors have taken advantage of a sell off earlier this week to pick up shares. According to a series of change of director's interest notices, directors including Aviad Eyal, Gail Pemberton, Fiona Trafford-Walker, and its CEO, Beau Bertoli all dipped into the market. The two largest purchases were made by Eyal and Pemberton. They bought $383,000 and $100,000 worth of shares, respectively, after they crashed lower following its trading update. It appears as though they believe this sell off has been a buying opportunity and are confident in its future prospects.
Rio Tinto Limited (ASX: RIO)
A change of director's interest notice reveals that independent non-executive director, Megan Clark AC, has been buying shares recently. According to the notice, Clark bought 525 shares through an on-market on November 18. The director paid an average of $94.33 per share, which works out to be a total consideration of $49,523.25. This purchase lifted Clark's holding to a total of 5,770 shares.
