Once a week I like to look at which ASX shares have been experiencing insider buying.
This is because insider buying is often regarded as a bullish indicator as nobody should in theory know a company, its prospects, and its true value better than its own directors.
Three shares which have been experiencing meaningful insider buying recently are listed below:
Cann Group Ltd (ASX: CAN)
According to a change of director's interest notice, non-executive director Geoffrey Pearce picked up 73,483 additional shares in the medicinal cannabis company through an on-market trade for $216,505. This has lifted Mr Pearce's stake in the company to 1,554,195 shares. He may believe that Cann Group is poised to be a big winner from recent regulation changes by the Federal Government to allow medicinal cannabis exports. Cann has significant production capabilities at its facilities in Victoria.
iSelect Ltd (ASX: ISU)
This price comparison company's shares have crumbled this week after a shockingly bad trading update revealed a significant cut to its full-year guidance. Chairman and independent non-executive director Chris Knoblanche has taken advantage of this share price decline to pick up 100,000 shares on-market for $47,500. According to the notice, this increases his holding to 343,091 shares. Mr Knoblanche is certainly braver than I am. After that recent update I'm staying well clear of iSelect even after its sizeable decline.
Link Administration Holdings Ltd (ASX: LNK)
A change of director's interest notice reveals that independent chair, Michael Carapiet, has made two large purchases of shares on-market this month. Mr Carapiet bought a total of 72,000 shares for approximately $580,000. He appears to have snapped up shares following a spot of share price weakness after the company raised $300 million at $8.75 earlier this month. Those funds will be used to provide Link Group with balance sheet flexibility to continue to pursue strategic opportunities.
