Insiders are buying these ASX shares after selloffs

They appear to see value in their companies' shares.

| More on:
A man in a business suit whose face isn't shown hands over two australian hundred dollar notes from a pile of notes in his other hand to an outstretched hand of another person.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Chrysos, Goldman Sachs Group, and Idp Education. The Motley Fool Australia has positions in and has recommended Chrysos. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

An executive stands looking out a glass window over the city.
Best Shares

The ASX bosses getting richer on the back of soaring ASX shares

These founders and CEOs made money hand over fist last financial year...

Read more »

A young man pointing up looking amazed, indicating a surging share price movement for an ASX company
Broker Notes

These ASX shares could rise ~20% to 40%

Analysts believe these shares could generate big returns for investors.

Read more »

Contented looking man leans back in his chair at his desk and smiles.
Broker Notes

Top brokers name 3 ASX shares to buy next week

Brokers gave buy ratings to these ASX shares last week. Why are they bullish?

Read more »

5 mini houses on a pile of coins.
Share Market News

Here's how the ASX 200 market sectors stacked up last week

ASX real estate shares were strongest amid a volatile week during which the ASX 200 set a new record.

Read more »

Two smiling work colleagues discuss an investment or business plan at their office.
Broker Notes

Which beaten down ASX 200 share did Goldman Sachs just upgrade to a buy rating?

The broker has become more bullish on this stock following last week's update.

Read more »

Hand holding Australian dollar (AUD) bills, symbolising ex dividend day. Passive income.
Best Shares

The best ASX shares to invest $1,000 in right now

Analysts think that putting your money into these stocks could be a smart move.

Read more »

green etf represented by letters E,T and F sitting on green grass
Share Market News

4 ASX ETFs to buy for FY25 and beyond

Could these ETFs be top options for investors looking for long term picks?

Read more »

A smiling woman sips coffee at a cafe ready to learn about ASX investing concepts.

How I'd invest $10,000 in ASX shares right now

I’m bullish about the prospects of these stocks.

Read more »