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:
Metcash Limited (ASX: MTS)
A change of director's interest notice reveals non-executive chairman Robert Murray has picked up shares of the wholesale distributor through an on-market trade this week. Mr Murray bought 20,000 shares at an average of $2.7965 per share or a total consideration of $55,929.42. This lifted the non-exec chairman's holding to a total of 84,005 shares. With its shares trading within sight of their 52-week low, it appears that Mr Murray sees a lot of value in them at this level.
NEXTDC Ltd (ASX: NXT)
According to a change of director's interest notice, non-executive director Sharon Warburton has seized on recent share price weakness to pick up 7,000 shares through an on-market trade. Warburton paid an average price of $6.29 per share, equating to a total consideration of over $44,000. This lifted her holding in the data centre operator to a total of 39,202 shares. While it might be best to wait for the market to settle again, I do think the recent tech selloff could have created a buying opportunity with NEXTDC shares.
Star Entertainment Group Ltd (ASX: SGR)
A change of director's interest notice reveals that non-executive director Richard Sheppard dipped into the market this week to buy 25,000 shares of the casino and resort operator through an on-market trade. Mr Sheppard paid a total of $137,578.13 or $5.50 per share. This purchase brought his total holding to 125,000 shares. I thought Star delivered a strong result in FY 2018 and could be worth a closer look.
