ASX directors buying and selling their company's shares can arguably provide insight into what they expect from its future. Indeed, investing great Peter Lynch is widely quoted as saying:
Insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.
Thus, insider buying is often heralded as a sign those in the know are confident in their business, while insider selling can arguably signify the opposite.
There have been plenty of director transactions on the ASX this month. Let's take a look.
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ASX directors trading their company's shares this month
Let's start with ASX technology share Electro Optic Systems Holdings Ltd (ASX: EOS). The stock has tumbled 75% since the start of 2022.
Its slump may have presented a buying opportunity, if a recent uptick in insider buying is any sign.
Directors Kate Lundy and Robert Kaye both recently bolstered their stake in the company. Lundy bought 8,000 shares in the ASX tech stock for 60 cents apiece on 22 November, while Kaye's spouse purchased 50,700 shares, paying around 57.90 cents apiece, on 22 November. The buys were worth $4,800 and $29,355 respectively.
Topping off the trading was a $307,050 acquisition by newly appointed chair Garry Hounsell. Hounsell bought 500,000 shares for 60.41 cents apiece on 24 November.
Meanwhile, insider selling was going down at WiseTech Global Ltd (ASX: WTC). The ASX tech company's founder, CEO, and director Richard White has been selling off the company's shares in droves this month, but there might be more to the story than meets the eye.
Between 28 October and 24 November, White appears to have offloaded a grand total of 455,075 shares in the ASX company, receiving $25.8 million for the sales. However, it's unclear whether the insider selling is related to a previously announced equity swap transaction.
Finally, ASX share Bravura Solutions Ltd (ASX: BVS) recently took a 52% tumble and some of its directors have seemingly taken advantage.
Chair Neil Broekhuizen indirectly bought 636,000 Bravura shares, paying 62.53 cents apiece, on 4 November. Director Alexa Henderson got in on the buying action on 7 November, indirectly acquiring 141,000 shares for 70.72 cents apiece. Finally, director Peter Mann indirectly purchased 119,200 shares for around 73.33 cents per stock on 8 November.
The parcels of ASX shares cost the respective directors $397,675, $99,715, and $86,224.
