I think that it can be useful for investors to keep an eye on which shares are experiencing 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 directors.
If they are buying, it could be a sign that they are confident in the direction the company is heading and/or see value in its shares.
With that in mind, listed below are a few ASX shares that have reported meaningful insider buying recently.
And as they are all down heavily year to date, it's possible that these directors believe they have been oversold. Let's see what has been happening:
Chrysos Corporation Ltd (ASX: C79)
This mining technology company's shares are down a disappointing 40% since the start of the year.
One director that is taking advantage of this weakness to buy their first shares in the PhotonAssay creator is Gregory Holt. According to change of director's interest notice, Holt picked up 12,000 shares through an on-market trade on 12 June.
The insider paid an average of $5.05 per share, which equates to a total consideration of $60,600.
Shaw & Partners would likely be very supportive of this purchase. Last month, the broker put a buy rating and $7.50 price target on the company's shares.
IDP Education Ltd (ASX: IEL)
This heavily shorted language testing and student placement company's shares are down 23% in 2024 and 37% on a 12-month basis. This has been driven largely by disruption in key markets caused by changes to student visa rules, which is weighing heavily on its performance.
Nevertheless, one of the company's non-executive directors appears to remain positive on the future and sees this as a buying opportunity.
A change of director's interests notice shows that Tracey Horton bought 1,300 shares through an on-market trade on 7 June. Horton paid a total of $19,691.65 for the shares, which equates to a price of approximately $15.15 per share.
Goldman Sachs currently has a buy rating and $21.75 price target on its shares. So, this insider could do very well if the broker is on the money with its recommendation.
Lendlease Group (ASX: LLC)
Finally, this property developer's shares have lost 27% of their value this year.
The company's independent non-executive director, Elizabeth M. Proust, AO, has taken advantage of this weakness to top up her position.
Ms Proust picked up 20,000 shares on 11 June through an on-market trade. The insider paid an average of $5.675 per share, which represents a total consideration of $113,500. This boosts her holding to a total of 123,061 Lendlease shares.
While none of the major brokers rate Lendlease as a buy, they do see value in its shares. For example, UBS has a neutral rating and $7.10 price target. This is 30% higher than where its shares trade today.
