There are a lot of bullish indicators out there for investors to use, but one of the most important indicators in my opinion is insider buying.
After all, directors should in theory know their companies and how they are performing better than anyone else.
Whilst it isn't always the case, if directors are confident enough to buy shares then I think it can be interpreted as a sign that things are going well for the company or that they believe it is undervalued.
With that in mind, here are three ASX shares that have experienced insider buying in recent days:
Adelaide Brighton Ltd. (ASX: ABC)
Director Raymond Barro has increased his holding in the building materials company significantly over the last few days. He acquired 19,504,684 shares to increase his holding to a total of 222,051,055 shares or 41% of the company. Approximately 15.5 million of these shares were bought on market, with the remaining 4 million shares being part of a share swap transaction. There is speculation floating around that this increase is not part of a plan to launch a takeover approach, but rather to put off any would-be suitors.
Myob Group Ltd (ASX: MYO)
According to a change of director's interests notice, the accounting software company's independent non-executive director and chairman, Justin Milne, has picked up 30,000 shares for $93,900. This lifted Mr Milne's holding up by 37% to 110,925 shares. MYOB's shares have fallen sharply over the last 12 months and are trading within a whisker of their 52-week low at present.
Scottish Pacific Group Ltd (ASX: SCO)
Non-executive chairman Patrick Elliott has been buying shares of the debtor finance and trade finance company on-market this month. Mr Elliott picked up 160,000 shares at an average price of $3.13 per share according to its ASX release. This increased his holding in the company by almost 24% to approximately 832,000 shares.
