At the end of each week I like to look at which shares have experienced insider buying.
This is because I believe insider buying is a bullish indicator as few should 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:
Breville Group Ltd (ASX: BRG)
According to a change of director's interest notice, non-executive chairman Steven Fisher has dipped into the market this week to buy shares of the home appliance manufacturer. Mr Fisher picked up 10,000 shares through on-market trades for a total consideration of $129,671.20, which works out to be approximately $12.97 per share. The addition of these shares brought Mr Fisher's total holding up to 110,000 shares. I'm a big fan of Breville and think it could be worth following Mr Fisher's lead by picking up a few shares.
Harvey Norman Holdings Limited (ASX: HVN)
Gerry Harvey has been busy buying the shares of this retailer again through on-market trades this week. A further three change of director's interest notices reveal that the director has snapped up another 595,642 Harvey Norman shares for a total consideration of $2,053,086.68. This equates to a price of $3.45 per share. Despite all this buying support from Mr Harvey, the retailer's shares are still down 15% year to date. While its shares do look dirt cheap, I intend to wait and see how the company fares in FY 2019 before deciding whether to invest or not.
Specialty Fashion Group Ltd (ASX: SFH)
This morning this fashion retailer released a change of director's interest notice which revealed that non-executive director Michael Hardwick has bought a substantial number of shares on-market this week. According to the note, Mr Hardwick picked up 100,000 shares for a total consideration of $129,871 or approximately $1.30 per share. This purchase brought the director's holding up to a total of 495,000 shares. I think it is good to see that insiders still see meaningful value in the company's shares despite their 835% gain over the last 12 months.
