5 beaten-up ASX shares being bought by insiders

Could all these buy-ups among company insiders indicate these ASX shares are going cheap?

ASX shares were in the red on Thursday, with the S&P/ASX All Ordinaries Index (ASX: XAO) down 0.27% at the market close.

In this article, we look at some recent transactions involving company insiders.

All of these stocks have fallen in value substantially in 2024.

Some of these buy-ups are significant in size, with the largest new investment worth $1.765 million.

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Are these 5 ASX shares going cheap?

Could all these buy-ups among company insiders indicate that these ASX shares are now going cheap?

Ultimately, this is open to interpretation.

But it's almost always a good sign when company directors choose to invest more of their own money into the businesses they run.

Here are the details.

DGL Group Ltd (ASX: DGL)

DGL Group is a materials sector business. It manufactures, transports, stores, and manages the processing of chemicals and hazardous waste. 

DGL was founded by CEO and executive director Simon Henry, who is also the largest shareholder.

The ASX materials share closed on Thursday for 61 cents, down 1.6%. It has fallen 28.2% in the year to date and has a 52-week high of $1.10.

Judging by a series of trades between October and November totalling $1.765 million in new investment, perhaps Henry feels the shares in his ASX company are going cheap.

Henry conducted three large trades between October and December.

Firstly, Henry purchased 276,000 shares on-market between 22 November and 27 November. The deal cost him $155,325.69, equating to an average share price of 56.27 cents.

He then made a much bigger purchase, snapping up 1,646,461 shares worth $969,142.51 on-market between 28 November and 3 December. This averages out to 58.86 cents per share.

These purchases followed another buy-up in October.

Henry bought 1,063,000 shares on-market between 24 October and 28 October. The outlay was $641,237.54, which translates to an average share price of just over 60 cents.

According to the ASX, DGL Group has 285,225,261 shares on issue. Henry owns 154,333,690 of them, which gives him a 54% stake in the company.

Tabcorp Holdings Ltd (ASX: TAH)

The Tabcorp share price was trading at 56.5 cents, down 0.88% at the close on Thursday and down 31.9% in the year to date.

Brett Chenoweth is the non-executive chair at the gaming and lottery services company.

Chenoweth bought 178,571 Tabcorp shares on-market on 6 December. He purchased the stock through his superannuation fund and paid 56 cents per share.

The $100,000 purchase raised his personal holdings in Tabcorp shares by 41%.

Worley Ltd (ASX: WOR)

Worley is a global supplier of engineering and construction management services, mainly for the energy, chemicals, and mining industries.

The ASX industrial share closed at $13.22, down 0.97% yesterday and down 24.2% in the year to date.

Non-executive director Joseph Chafic Geagea purchased 4,000 Worley shares for a bit over $53,000 on 4 December.

This increased his personal holdings by 40%.

Geagea paid $13.345 per share in the on-market trade.

Martin Parkinson AC also bought more Worley stock in his first personal trade in more than two years.

Parkinson is also a non-executive director at Worley.

He bought 505 shares on-market at an average price of $13.800139.

He now holds 17,505 shares in the company.

Liontown Resources Ltd (ASX: LTR)

This ASX lithium share was up 1.6% to 61 cents yesterday and has fallen 63.9% in the year to date.

Company insider Adrienne Parker more than doubled her stake in the lithium producer by purchasing 15,000 Liontown shares on-market on 5 December for $10,110.

Fellow director Shane McLeay bought 100,000 Liontowns shares on-market on 3 December. The outlay was $72,000, which equates to an average share price of 72 cents.

The purchase increased his personal holdings in Liontown by 55%.

Sonic Healthcare Ltd (ASX: SHL)

Sonic Healthcare is a global company specialising in pathology, laboratory services, and radiology.

This ASX healthcare share was trading for $28.10, down 0.64% at yesterday's close and down 12.7% in the year to date.

Three company directors recently made new investments in the company.

Kate Spargo purchased 1,500 Sonic Healthcare shares on-market on 10 December for $28.52 per share.

Mark Compton bought 1,000 shares on-market on the same day for $28.46 per share.

Suzanne Crowe bought 348 shares on-market on 9 December for $28.71 per share.

Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Sonic Healthcare. 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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