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Insiders have been buying these ASX shares

I think it is well worth keeping a close eye on which shares have experienced meaningful insider buying.

This is because insider buying is generally regarded as a bullish indicator, as few people know a company better than its own directors.

A number of shares have reported meaningful insider buying again this week. Here are a couple that caught my eye:

Accent Group Ltd (ASX: AX1)

According to a change of director’s interest notice, one of this footwear-focused retail group’s non-executive directors has taken advantage of a pullback in its share price to buy shares. The notice reveals that New York-based Joshua Lowcock has bought 3,105 shares through an on-market trade on March 3. Mr Lowcock paid an average of $1.61 per share, which equates to a modest ~$5,000 investment. These are the only shares the director currently owns. The Accent Group share price is currently changing hands at $1.41, down almost 36% from the 52-week high of $2.21 it reached just two weeks ago. I think this makes its shares a bit of a bargain, so I can’t say I’m surprised by the insider buying.

GPT Group (ASX: GPT)

A change of director’s interest notice reveals that this diversified property company’s chairman, Vickki McFadden, has been buying shares on-market this week. McFadden bought 25,000 shares on March 4 for an average of $5.72 per share. This works out to be a total consideration of $143,000 and lifted the chairman’s holding to a total of 77,525 shares. This isn’t the only insider buying shares. Earlier this week there was also a purchase of 10,000 shares by its director Tracey Horton AO. Ms Horton paid an average of $5.83 per share, which equates to a total consideration of $58,300. This could prove to be good timing, as Goldman Sachs has just upgraded GPT Group’s shares to a buy rating with a price target of $5.97. It believes its defensive qualities are underappreciated by the market.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Accent Group. 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.

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