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 few should know a company, its prospects, and true value better than its own directors.
Three shares which have been experiencing meaningful insider buying recently are listed below:
Eclipx Group Ltd (ASX: ECX)
According to a change of director's interest notice, this fleet management company's deputy chief executive officer and chief financial officer, Garry McLennan, has topped up his considerable holding. McLennan bought 100,000 shares at $3.15 per share through an on-market trade last Friday. The Eclipx share price has been trading close to a 52-week low recently and at a level that McLennan certainly seems to believe is attractive. Which isn't a surprise given that last week Eclipx reiterated its cash earnings per share growth guidance of 10% to 12% on the 25.1 cents achieved in FY 2017. This means its shares are changing hands at a lowly 12x full-year cash earnings today.
Medical Developments International Ltd (ASX: MVP)
A change of director's interest notice reveals that this healthcare company's CEO, David Williams, has picked up a total of 461,009 shares through two on-market trades this week at an average of $6.09 per share. Mr Williams swooped in after Medical Developments International's shares plunged lower following the release of an underwhelming sales update. Just two months ago Williams offloaded 2 million shares at $7.50 apiece through an off-market block trade.
National Veterinary Care Ltd (ASX: NVL)
This veterinary company has seen two of its directors snap up shares this week. According to two change of director's interest notices, non-executive directors Ms Susan Forrester and Dr Stephen Coles picked up 4,468 and 20,000 shares, respectively, last Friday. With its shares notably lower year-to-date, it appears that the two directors have seen an opportunity to top up their holdings at a good price. These share purchases may ease the nerves of shareholders after rival Greencross Limited (ASX: GXL) recently reported weak trading from in its veterinary clinics.
