6 beaten-up ASX 200 shares being bought up by insiders

Shares were all purchased at modest prices relative to history.

Directors and executives of several ASX 200 shares have been buying up stock in their represented companies this week.

These include heavyweights like BHP Group Ltd (ASX: BHP) and Woolworths Group Ltd (ASX: WOW), both of which have been heavily sold lately.

But insiders are also buying up shares in Super Retail Group Ltd (ASX: SUL), Challenger Ltd (ASX: CGF), APA Group (ASX: APA), and Nine Entertainment Co. Holdings Ltd (ASX: NEC).

Whenever insiders of a company (directors, executives, owners) buy up stock, it's bound to raise an eyebrow or two.

But could this signal a spell of confidence for these companies? Or is there more to the story? Let's see.

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Image source: Getty Images

Insiders buying ASX 200 shares

Taking a step back, several of these ASX 200 shares have been heavily sold in recent months.

BHP shares have come under such pressure and are down more than 6% in a month. But two directors have recently boosted their holdings in the mining giant.

Donald Lindsay and Xiaoqun Clever-Steg each purchased thousands of BHP shares this week. They made the purchases at an average of $42.79 and $42.32 per share, respectively.

Meanwhile, Woolworths has also been pummeled lately, but not without its merit, some would say. The company has been in constant headlines for months now.

Filings this week show that director Philip Chronican bought 8,000 shares at a consideration of $237,040. He now holds 20,000 shares in the supermarket giant.

Super Retail Group CEO Anthony Heraghty also converted performance rights into 63,528 ordinary shares, increasing his direct holdings.

But director Judith Swales also purchased 10,000 shares in the company last week at a consideration of $14.28 per share.

This comes after the ASX 200 share sunk more than 19% in the past month of trade.

Challenger, APA Group, and Nine bought by insiders

There are three more ASX 200 shares whose insiders have been actively buying up stock in November.

Challenger director Duncan West acquired 13,456 shares at $5.935 each, according to filings this week.

The investment management company's share price has sunk by 8% in the past month. West's purchases have seen him acquire shares at these lows.

APA Group director Adam Watson has also been actively increasing his holdings, acquiring an additional 10,000 securities for a total value of $68,600.

The ASX 200 share has slipped more than 13% in the past month, and is now down more than 22% this year to date.

Finally, Nine Entertainment directors Catherine West and Andrew Lancaster boosted their stakes in the media giant.

The pair purchased shares at $1.13 and $1.11 apiece, respectively, according to mandatory filings.

Nine shares have been absolutely hammered this year, down nearly 44% in value. After losing nearly half its market value this year, these directors have bought up shares on the cheap.

Foolish takeout

Insiders have been buying up shares in these ASX 200 shares in recent sessions. Many of these stocks are heavily depressed and selling at very modest prices relative to history.

Whether or not this signals a vote of confidence for the underlying companies is a matter for debate.

Time will tell if these insider transactions are meaningful or not.

Motley Fool contributor Zach Bristow 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 Super Retail Group. The Motley Fool Australia has positions in and has recommended Apa Group and Super Retail Group. The Motley Fool Australia has recommended Challenger and Nine Entertainment. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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