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 Foundation Investment Co.Ltd (ASX: AFI)
According to a change of director's interest notice, an independent non-executive director of this investment company has been buying shares on-market recently. The note reveals that Graeme R Liebelt picked up a total of 145,000 shares through a series of trades on June 13 and 14. Mr Liebelt paid an average of approximately $6.17 per share, which equates to a total consideration of almost $895,000. This increased the director's holding to a total of 463,463 shares. Mr Liebelt made the purchase despite Australian Foundation Investment Co's shares trading within sight of their 52-week high.
BHP Group Ltd (ASX: BHP)
One of this mining giant's directors has been buying shares on-market. Independent non-executive director, Ian Cockerill, picked up 3,500 of BHP's UK-listed shares for an average of £19.25 per share on June 13. This equates to a total consideration of £67,375 (~A$123,600). According to the notice, the director bought the shares in order to meet his BHP Minimum Share Requirement. Mr Cockerill is a new addition to the BHP board, having been appointed on April 1 2019.
Vocus Group Ltd (ASX: VOC)
One of this telco company's non-executive directors appears to believe the selloff of its shares this week has created a buying opportunity. Following the collapse of no less than two takeover approaches this month, the Vocus share price has sunk notably lower and to a level which Matthew Hanning must have felt was attractive. Earlier this week the director picked up 59,000 Vocus shares via an on-market trade for a total consideration of $180,643. This lifted Mr Hanning's holding to a total of 500,000 shares.
