Last week, AGL Energy Limited (ASX: AGL) revealed that yet another insider has been buying its shares.
According to the release, non-executive director, Mark Twidell, picked up 7,500 AGL shares for an average of $8.85 per share.
This represents a total consideration of just over $66,000. It also means that this is the ninth time that insiders have bought shares this year.
Given that insider buying is often seen as a bullish indicator, should you be following their lead and doing the same?
Should you be buying AGL shares?
While the insider buying is encouraging, most analysts don't see a lot of value in AGL shares at current levels.
For example, although Macquarie has an outperform rating on the company's shares, its price target of $8.31 has now been surpassed.
Elsewhere, last week, the team at Morgan Stanley retained their equal-weight rating with an $8.88 price target. This is broadly in-line with where AGL shares are trading this afternoon.
And over at Morgans, its analysts currently have a hold rating and $6.89 price target. This implies potential downside of 22% for AGL shares from current levels.
The broker is sitting on the fence until it has confidence that the company is moving onwards and upwards from its troubles. It said:
We anticipate increasing dividends as earnings begin to recover in the next 12 months however we think the market will want to see clear evidence of this before it regains confidence in the company and the sector.
