Insider buying is usually regarded as a bullish indicator, as few people should know a company better than its own directors.
If a director has the confidence to buy shares, it is often interpreted as a sign that things are going well and they expect them to appreciate in value.
Conversely, when directors sell shares, it is often seen as a bearish indicator as you'd be unlikely to sell shares if you felt they were about to increase in value.
With that in mind, here are two ASX 300 shares which have recently experienced significant insider selling:
Neuren Pharmaceuticals Ltd (ASX: NEU)
A change of director's interest notice reveals that one of this ASX 300 pharmaceutical company's non-executive directors sold shares this week.
According to the release, On 14 June, Trevor Scott sold 1,175,000 Neuren shares on-market at $13.00 per share for a total consideration of $15.275 million. This leaves Scott with an interest in 2.4 million shares.
The company commented on the sale. It said:
Trevor has been a non-executive director and major shareholder since Neuren's inception more than 20 years ago, providing commitment, leadership and financial support during that period. Following the sale he remains a major shareholder, retaining an interest in 2.4 million shares.
TechnologyOne Ltd (ASX: TNE)
Another change of director's interest notice shows that one of this ASX 300 enterprise software company's non-executive directors has sold over $30 million worth of shares this week.
The release reveals that the director, John Mactaggart, sold 2 million shares through off-market trades on 14 June. Mactaggart received a total consideration of $31.3 million for his shares, which represents an average of approximately $15.65 per share.
This is significantly more than he would have received 12 months ago. Since this time last year, the TechnologyOne share price has gained over 50%.
It is worth highlighting that Mactaggart still has a considerable indirect holding of almost 25 million shares. So, his interests are clearly still aligned with shareholders.
