I like to keep a close eye on 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. Which is arguably increasingly important given the recent market selloff.
A number of shares have reported meaningful insider buying this week. Here are a couple which have caught my eye:
Accent Group Ltd (ASX: AX1)
This footwear-focused retailer has experienced another bout of insider buying this week. Last week I revealed that its chief executive officer, Daniel Agostinelli, picked up a total of 100,000 shares through on-market trades between March 10 and March 12. This has been followed up with an even larger purchase of shares from non-executive director, Brett Blundy. According to the change of director’s interest notice, the director picked up a total of 1,003,058 shares through on-market trades between March 13 and March 16. Mr Blundy paid an average of ~$1.02 per share or a total consideration of ~$1.022 million. These purchases have increased the director’s holding to a total of 98,542,751 fully paid ordinary shares.
Wesfarmers Ltd (ASX: WES)
According to the change of director’s interest notice, one of this conglomerate’s non-executive directors has decided to take advantage of recent share price weakness to top up their position. The notice reveals that Sharon Warburton has more than doubled her holding with the purchase of 1,400 shares through an on-market trade on March 12. Warburton paid an average of $36.72 per share, which was a 22.5% discount to its 52-week high. It also represents a total consideration of $51,408. This lifted the director’s holding to a total of 2,436 shares. Warburton is a relatively new member of the Wesfarmers board, joining the company in August 2019.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Wesfarmers Limited. 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.