Every Friday I like to look at which ASX shares have been experiencing insider buying.
I think keeping tabs on insider buying is important because it is often seen 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:
Helloworld Travel Ltd (ASX: HLO)
According to two change of director's interest notices, Andrew Burnes and Garry Hounsell have been buying shares on-market this week. The travel company's CEO, Andrew Burnes, picked up 8,000 shares for a consideration of $36,294.82 and its chairman and non-executive director, Garry Hounsell, bought a total of 10,000 shares for a consideration of $46,399.79. As I said earlier this week, I think Helloworld is one of the best options in the mid cap space right now. This is especially the case after this insider buying.
Kogan.com Ltd (ASX: KGN)
There has been a lot of talk this week about CEO Ruslan Kogan looking to offload shares, but not all directors are selling. A change of director's interest notice reveals that Greg Ridder has picked up 2,500 shares through on-market trades this week. The non-executive chairman appears to have seized on the Kogan selloff on Tuesday with a $21,500 purchase of shares the following day. This increased his holding to a total of 152,500 shares. I thought the selloff was unjustified and can't say I'm surprised to see Mr Ridder snapping up shares.
MYOB Group Ltd (ASX: MYO)
According to a change of director's interest notice, non-executive director Craig Boyce has dipped into the market recently to buy 25,000 shares at a price of $2.81 per share. This $70,250 purchase lifts Mr Boyce's holding in the accounting software company to a total of 125,000 shares. While it is good to see director's buying its shares, I'm not in a hurry to follow suit. Especially after a note out of Morgan Stanley this week revealed that the broker has placed an underweight (sell) rating on the company's shares.
