Some of Australia's top corporate brass have been loading up on Australian equities recently. This past week, insider buying involved some notable ASX-listed companies.
This can be a positive sign for everyday investors like you and me. You wouldn't throw your hard-earned money into a company you didn't believe had strong potential for a good return, and insiders are no different.
Those in the corporate trenches usually see a lot more of the inner workings than the rest of us. If they are optimistic, it says something. They mightn't necessarily be right, though — a crystal ball isn't given upon entry into the C-suite.
Nevertheless, the vote of confidence among those high up is worth noting.
Which companies have recent insider buying?
A handful of big names have attracted the capital of their directors since last week.
The first cab off the ranks is the Dan Murphy's and BWS operator, Endeavour Group Ltd (ASX: EDV). Despite issuing a disappointing trading update earlier this month, independent chair Ari Mervis bought the dip on 14 November.
According to the release, Mervis acquired 100,000 shares in the ASX 200 company at $4.27 a piece, equating to a colossal $640,620.38 investment. Evidently, the chair is undeterred by the company's shrinking operating margins.
Endeavour shares currently trade at $4.34 on Wednesday morning. Goldman Sachs analysts think the bottleshop beast is worthy of a $5.50 price tag, implying a potential 27% upside on the table. If that turns out to be the case, I reckon it's Mervis' shout at the pub.
What's more optimistic than one insider buying shares? Two insiders. Although Stockland Corporation Ltd (ASX: SGP) has had a cracking run over the past year (gaining 25%), two of its directors are still snapping up shares in the property development company.
Stockland directors Robert Johnston and Adam Tindall were buyers on Monday and Tuesday this week. The ASX release shows Johnston nabbed $207,183, only a smidgen less than Tindall's $208,000 investment.
Unlike Endeavour, the buys follow good news. Stockland revealed an upgraded FY25 guidance last week. The group now expects funds from operations between 33 cents and 34 cents per security, improving 1 cent after getting regulatory approval to acquire $1.06 billion of residential communities.
Lastly, Computershare Ltd (ASX: CPU) won a bigger chunk of independent director Gerrard Schmid's wealth last week.
We're not talking about any chump change here. Schmid invested another $291,418 in the financial administration company. This is on top of the director's $150,000 investment back in August.
Computershare's share price has risen 35% in the past year. For comparison, the S&P/ASX 200 Index (ASX: XJO) has gained 18% over the same timeframe.
