Once a week I like to look at which shares have experienced meaningful insider buying.
This is because insider buying is often regarded as a bullish indicator as few people know a company and its intrinsic value better than its own directors.
Three shares which have reported meaningful insider buying this week are listed below:
Australian Pharmaceutical Industries Ltd (ASX: API)
According to a change of director's interest notice, the chairman of this pharmacy chain operator and distributor has topped up his holding this week. Mark Smith bought 10,000 shares through on-market trades between May 8 and May 9 for a total consideration of $13,200. These purchases brought the chairman's holding up to a total of 300,000 shares. Australian Pharmaceutical Industries' shares are currently trading within touching distance of their 52 week low and at a level that this director appears to believe is good value.
Tassal Group Limited (ASX: TGR)
A change of director's interest notice reveals that independent non-executive director, John Watson, has bought shares through an on-market trade this month. According to the notice, Mr Watson picked up 10,000 shares at an average of $4.77 per share. This purchase lifted his holding to a total of 116,924 shares. The salmon and seafood producer's shares may be up over 23% over the last 12 months, but judging by this purchase, this director appears confident that there are more gains ahead.
WAM Global Ltd (ASX: WGB)
A series of change of director's interest notices reveal that WAM chairman Geoff Wilson has made no less than five separate purchases of WAM Global's shares this month. He picked up a total of around 105,000 shares in the global investment fund for an average price of ~$1.90 per share. Disappointingly for shareholders, WAM Global's shares are still trading notably lower than their IPO price of $2.20. But perhaps not for long given Mr Wilson's recent buying frenzy.
