The Xero Limited (ASX: XRO) share price is pushing higher on Wednesday morning.
At the time of writing the cloud-based business and accounting software company's shares are up slightly to $100.00.
Why is the Xero share price pushing higher?
Xero's shares were given a lift this morning from some insider buying news.
According to a change of director's interests notice, the company's chairman, David Thodey AO, has been buying shares this week.
The notice reveals that Mr Thodey picked up 4,000 Xero shares through an on-market trade on Monday. The chairman paid an average of $101.34 per share, which equates to a total consideration of $405,357.41.
This purchase lifted Mr Thodey's holding in the company to a total of 8,461 shares.
Should you invest?
Just as insider selling is a bearish indicator, insider buying is often seen as a bullish indicator. After all, who knows a company better than its own directors.
I already felt that Xero was a buy, but this significant insider buying gives me extra confidence in this view.
Overall, I believe Xero is one of the best buy and hold options on the Australian share market.
This is due to its high quality platform, which was recently strengthened with the acquisition of Waddle, favourable industry tailwinds, and its massive global market opportunity.
In respect to the latter, I believe the company has a significant opportunity in the North American market. At the end of FY 2020, Xero had just 241,000 subscribers in this lucrative market. This compares to a sizeable 914,000 subscribers in a materially smaller ANZ market.
If it can make a success of its expansion in North America, which I believe it will, then it should underpin very strong subscriber and recurring revenue growth over the next decade and beyond.
