Every so often 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.
A number of shares have reported meaningful insider buying this week. Here are a few that caught my eye:
Magellan Financial Group Ltd (ASX: MFG)
According to a change of director's interest notice, one of this fund manager's non-executive directors has been topping up his holding recently. The notice reveals that Hamish McLennan picked up 5,000 ordinary shares through an on-market trade on September 19. Mr McLennan paid an average of $50.9942 per share or a total consideration of $254,971. This has increased the director's holding to 105,248 ordinary Magellan Financial Group shares and 86,088 units in Magellan Global Trust (ASX: MGG).
Metcash Limited (ASX: MTS)
A change of director's interest notice reveals that this wholesaler and distributor's non-executive director, Peter Birtles, has bought shares through an on-market trade. According to the notice, the former Super Retail Group Ltd (ASX: SUL) CEO picked up 40,000 shares on September 20 for an average of $2.9975 per share. This works out to be a total consideration of $119,900. The Metcash share price is up 26% this year, but this director appears to believe it could still go higher.
Webjet Limited (ASX: WEB)
Another change of director's interest notice reveals that the CEO of this online travel agent has been buying shares on-market following the collapse of Thomas Cook. According to the notice, John Guscic has snapped up 25,000 shares for a total consideration of almost $400,000 on September 24 and 25. This lifted his holding to 7,034,545 shares. This follows a $97,440 purchase of shares by its non-executive director, Brad Holman, a week earlier.
