In theory nobody should know a company and its prospects better than its directors. In light of this, when insiders are shown to be buying shares it is often regarded as a bullish indicator.
Three shares which have been experiencing meaningful insider buying this month are listed below. Here's what you need to know:
Cabcharge Australia Limited (ASX: CAB)
This month the taxi payment processor's non-executive director Clifford Rosenberg instructed his broker to snap up $200,000 worth of shares on-market following the release of Cabcharge's half-year results. This took Mr Rosenberg's holding up to 111,307 shares and was hot the heels of fellow non-executive director, Louise McCann, who snapped up $25,000 worth of shares through an on-market trade last week. These directors appear to believe that the Cabcharge turnaround is working.
Computershare Limited (ASX: CPU)
According to a change of director's interest notice, non-executive director Abigail Cleland has picked up 11,500 shares of the share registry company for $202,630 through an on-market trade. Despite Computershare's share price being close to a multi-year high, Ms. Cleland clearly has confidence that the company's strong performance can continue long into the future and drive the share price higher. In addition to Ms. Cleland, fellow non-executive director Lisa Gay dipped into the market last month to purchase almost $200,000 worth of the company's shares through an on-market trade.
G8 Education Ltd (ASX: GEM)
This week Professor Julie Cogin picked up 15,000 shares in the childcare operator for $41,400 through an on-market trade. The non-executive director wasn't the only one dipping a toe into the market. Fellow director Susan Forrester picked up 9,818 shares for approximately $27,000 through an on-market trade as well. This was the sixth time in the space of a month that insiders have bought G8 Education's shares, which could be a positive sign for shareholders.
