I think it can be useful for investors to keep an eye on which shares have experienced meaningful insider buying.
That's 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:
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Bendigo and Adelaide Bank Ltd (ASX: BEN)
A change of director's interests notice reveals that this regional bank's chair has been buying shares in December. According to the notice, independent chair, Vicki Carter, snapped up a total of 4,933 Bendigo and Adelaide Bank shares last week through an on-market trade on 4 December.
Carter paid an average of $10.13 per share, which equates to a total consideration of $49,971.29. This purchase boosted the chair's holding to a total of 38,849 shares.
Bendigo and Adelaide Bank shares are down 21% over the past 12 months. The majority of this can be attributed to the release of the results of an investigation by Deloitte into suspicious activity.
The investigation, which was initiated by the bank, concluded that deficiencies existed regarding the bank's approach to the identification, mitigation and management of money laundering (ML) and terrorism financing (TF) risk.
Chalice Mining Ltd (ASX: CHN)
Another change of director's interests notice shows that one of this mineral exploration company's non-executive directors has been buying shares this week.
On Wednesday 10 December, Richard Hacker paid a total of $99,566.34 to acquire 59,862 Chalice shares through an on-market trade. This represents an average of approximately $1.66 per share.
This lifted Hacker's shareholding (indirect and direct) to over 1.3 million shares. He also has a large number of unlisted options, which are out of the money at present, and performance and retention rights.
Xero Ltd (ASX: XRO)
Finally, a non-executive director at Xero has taken advantage of recent share price weakness to load up on its shares.
A notice reveals that Dale Murray has bought 1,286 Xero shares through an on-market trade on 11 December. Murray paid an average of $115.30 per share, which represents a total consideration of $148,275.80.
This increased the non-executive director's shareholding to a total of 2,719 shares.
