Macquarie Group Ltd (ASX: MQG) shares have drifted lower in recent weeks, so it's worthwhile asking whether the ASX financial share is a 'buy the dip' opportunity or not. It's down 8% since 20 July 2023.
There are many people's opinions we can take into account, such as my own opinion and analysts at brokers. The most important might be the honest opinions of the company's leadership figures.
I wouldn't be surprised if the management of all S&P/ASX 200 Index (ASX XJO) companies say their business is always good value. It could be hard not to be biased, and you wouldn't want to spook the market on the company's current valuation. Actions can speak louder than words – it could be seen as a good sign if leadership figures decide to buy shares on the market themselves.
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Directors buy Macquarie shares
A few weeks ago, Macquarie director Mike Roche bought some shares on the market. According to an ASX announcement, Mike Roche has gone back and bought more shares recently. He decided to buy 800 shares for $173.13 each on 16 August 2023. That means he invested another $138,500 into his holding of the ASX financial share.
Another director that has been investing is Susan Lloyd-Hurwitz. She didn't own any Macquarie shares before her investment on 2 August 2023 and decided to buy 283 shares on the market for $176.55 each. That's a total investment of around $50,000.
These aren't the biggest director purchases we'll see on the ASX this year, but they would be counted as large investments by most Aussie households.
What can we read into this?
It's often said that there are many reasons that directors sell shares, but there's usually only one reason to buy – they think the (Macquarie) share price is good value.
I think it's a good sign that directors are buying because they believe in the long-term future of the business, even if the short-term looks a bit uncertain because of the economic conditions (such as inflation and high interest rates).
I believe the ASX financial share is one of the highest quality in its sector on the ASX. As a financial business, it's not too surprising there is medium-term volatility with profit and the Macquarie share price as the economy is not always going to be growing strongly every single year. It could be the right time to invest in Macquarie, with the share price now sitting at $171, which is lower than what the directors have been buying at.
