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:
Australian Agricultural Company Ltd (ASX: AAC)
According to a change of director's interest notice, CEO Hugh Killen has picked up 83,000 Australian Agricultural Company shares through an on-market trade this week. Mr Killen paid an average price of $1.196 per share for a total consideration of $99,813.97. This purchase could certainly improve investor sentiment after a tough 12 months for the beef and agricultural products provider. Last week the company posted a statutory EBITDA loss of $35.3 million for FY 2018, compared to $133.2 million profit in FY 2017. It is worth noting also that there have been rumours of a takeover approach floating around.
Greencross Limited (ASX: GXL)
A change of director's interest notice reveals that this integrated pet care company's new CEO has made a sizeable purchase of shares. According to the note, Mr Simon Hickey picked up 58,112 shares through an on-market trade on Friday of last week. The former Qantas Airways Limited (ASX: QAN) executive paid a total of $249,881.60 for the shares. It certainly was good timing on his part. Just a few days later the company's shares rallied higher amid speculation that it could be a takeover target. While this is a positive, I think investors ought to wait for the company's results before deciding whether to invest.
WAM Leaders Ltd (ASX: WLE)
According to a change of director's interest notice, WAM Capital Limited (ASX: WAM) founder and chairman Geoff Wilson has been buying shares in WAM Leaders. Mr Wilson picked up a total of 187,608 shares over the course of three days through on-market trades. The sizeable purchase cost a total of $214,409.31 and lifted Mr Wilson's holding in WAM Leaders to 5,296,559 shares. While it isn't my first pick of the WAM collection, it could be worth a closer look after this spot of insider buying.
