Every so often, I like to take a look to see 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 month. Here are a couple which have caught my eye:
Medical Developments International Ltd (ASX: MVP)
According to a change of director's interest notice, one of this medical device company's directors has been buying shares this week.
The notice reveals that its new non-executive director, Mary Sontrop, bought a total of 18,630 shares through an on-market trade on Monday. Ms Sontrop paid an average of $5.3706 per share, which equates to a total consideration of ~$100,000.
Ms Sontrop has moved quickly to align her interests with shareholders. She was only appointed as a Non-Executive Director last week. The new director has extensive international experience in the biopharmaceutical sector across manufacturing operations, quality, and business integration. During her 28 years with CSL Limited (ASX: CSL), she was an integral part of CSL's globalisation through a series of major acquisitions.
Interestingly, this is just the latest in a number of former CSL executives to join the company. Late last year ex-CSL execs Brent MacGregor and Gordon Naylor joined as CEO and Chairman, respectively.
Sydney Airport Holdings Pty Ltd (ASX: SYD)
A change of director's interest notice reveals that one of this airport operator's directors almost doubled their holding last week. According to the notice, non-executive director Abigail Cleland picked up 17,070 shares through an on-market trade on Thursday of last week.
The release reveals that Cleland paid an average of $5.83 per share, which equates to a total consideration of ~$99,500. This lifted her holding to a total of 34,983 shares.
With the Sydney Airport share price still down 21% from its 52-week high, it appears as though this director sees value in its shares.
Once broker that would agree is Goldman Sachs. It currently has a buy rating and $6.73 price target on Sydney Airport's shares.
