At the end of each week I like to look at which shares have experienced insider buying.
This is because insider buying is generally seen as a bullish indicator as few know a company, its industry, prospects, and true value better than its own directors.
Three shares which have reported meaningful insider buying this week are listed below:
InvoCare Limited (ASX: IVC)
According to a change of director's interest notice, independent non-executive director Bart Vogel picked up 2,965 shares at an average price of $12.58 per share this week. This brought Mr Vogel's holding in the funerals company to a total of 15,000 shares. InvoCare's shares have fallen 8% this month after a soft full year result. While I think it is a quality company, I intend to wait for its performance to improve before making a move.
Speedcast International Ltd (ASX: SDA)
This week no less than five separate directors have been buying the shares of this provider of satellite-based communication networks and services in the satellite service provider industry. The largest purchase came from CEO Pierre-Jean Beylier who picked up 86,200 shares through on-market trades on Wednesday for an average price of $4.06 per share or a total consideration of approximately $350,000. Not far behind was independent non-executive director Grant Ferguson who picked up 35,000 shares at an average price of approximately $3.99 per share through an on-market trade. Clearly the company's directors think Speedcast's shares have fallen into bargain territory after a massive decline this week following a downward revision to its full year guidance.
Super Retail Group Ltd (ASX: SUL)
A change of director's interest notice reveals that non-executive director Howard Mowlem picked up 10,000 shares through an on-market trade this week for a total consideration of $97,469.90. This doubled Mr Mowlem's interest in the company to 20,000 shares. Mr Mowlem isn't the only one that thinks Super Retail's shares are in the buy zone. A broker note out of Goldman Sachs last week revealed that its analysts had retained its buy rating and lifted the price target on Super Retail's shares to $10.85 after the release of a strong full year result.
