It can be useful for investors to keep an eye on which shares have experienced 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 see value in its shares.
With that in mind, listed below are a few ASX shares that have reported meaningful insider buying recently. They are as follows:
Beach Energy Ltd (ASX: BPT)
A change of director's interests notice reveals that one of this energy giant's independent non-executive directors has been buying shares this month.
According to the notice, Bruce Clement picked up a total of 40,000 Beach Energy shares this week, bringing his holding to 100,000 shares. The director paid a total of approximately $50,825 for these shares, which equates to an average price of approximately $1.27 per share.
Westpac Banking Corp (ASX: WBC)
One of this banking giant's directors have been snapping up shares this month.
A change of director's interests notice shows that independent non-executive director Pip Greenwood picked up her first Westpac shares since joining the board in August.
Greenwood snapped up 4,122 Westpac shares through an on-market trade on 4 November. The director paid an average of $40.207 per share, which equates to a total consideration of approximately $165,733.
Unfortunately, since this purchase, the Westpac share price has come under pressure along with the rest of the big four banks. The shares of Australia's oldest bank last traded at $37.87.
Xero Ltd (ASX: XRO)
A couple of this cloud accounting platform provider's directors have been taking advantage of share price weakness to top up their positions this week.
According to one change of director's interests notice, Xero chair, David Thodey, bought 833 Xero shares through an on-market trade on 18 November. The company's chair paid a total of $99,853.71 for the shares, which represents an average price of $119.87 per share. This lifts Thodey's shareholding in Xero to a total of 11,005 shares.
Xero's non-executive director, Mark Cross, made a similar on-market purchase on 18 November as well. A second notice released today reveals that Cross picked up 820 Xero shares for a total of $98,408.20 on Tuesday. This represents an average price of $120.01 per share and lifts his holding to a total of 5,292 shares.
