I always 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, let's look at some meaningful insider buying over at Westpac Banking Corp (ASX: WBC) and what that could mean for the big four bank's shares.
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Who is buying Westpac shares?
According to a change of director's interest notice, Westpac's independent non-executive director, Andy Maguire, has picked up his first shares in the bank since joining the company in July 2024.
Upon his appointment, Westpac noted that Maguire has more than 35 years' experience in financial services and began his career in banking at Lloyds Banking Group.
From 2014 to 2020, he was group Chief Operating Officer at HSBC Holdings plc (NYSE: HSBC) with responsibility for operations, technology, real estate, change and transformation and operational resilience.
He is currently chairman of UK banking software fintech Thought Machine Group and also an independent non-executive director of AIB Group plc. It is a financial services group operating predominately in the Republic of Ireland and the UK.
Commenting on his appointment last year, Westpac's chairman, Steven Gregg, said:
Andy is a highly respected global leader in digital transformation. His deep experience in technology infrastructure in the banking sector will further strengthen the Board and complement the skills of existing Directors. In particular, Andy's capabilities will be a valuable asset for Westpac as we execute our technology simplification through the UNITE program.
Clearly Maguire knows a thing or two about the banking sector. So, his purchase of Westpac shares could be a positive signal for investors.
What did he buy?
The notice reveals that the independent non-executive director bought 6,615 Westpac shares for an average of $32.3978 per share.
This equates to a total consideration of approximately $215,000.
One broker that would be supportive of this purchase is UBS. Last month, its analysts put a buy rating and $37.00 price target on the big four bank's shares.
This implies potential upside of 13% from current levels and would value those 6,615 Westpac shares at approximately $245,000.
Time will tell if its shares get to that level.
