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.
A number of shares have reported meaningful insider buying this week. Here are a few that caught my eye:
Helloworld Travel Ltd (ASX: HLO)
According to a change of director's interest notice, this travel company's chief executive officer and managing director has been buying shares on-market this month. The notice reveals that Andrew Burnes picked up 10,000 shares through an on-market on October 2 for a total of $46,647.50. This equates to an average of ~$4.66 per share. Mr Burnes now has a total of 10,470,531 shares held directly and 18,530,105 shares held indirectly.
Nanosonics Ltd (ASX: NAN)
A change of director's interest notice reveals that one of this infection control specialists' non-executive directors has been buying shares on-market this week. According to the notice, on October 8 Geoff Wilson bought 3,237 ordinary shares for a total consideration of $19,784.70, which equates to an average of $6.11 per share. Just to clarify, this director is not the Geoff Wilson from WAM Capital Limited (ASX: WAM).
Sealink Travel Group Ltd (ASX: SLK)
Another travel company which has experienced meaningful insider buying this month is SeaLink. According to a change of director's interest notice, its non-executive director Fiona Hele has doubled her holding through an on-market purchase on October 9. Hele picked up 10,000 shares for an average of $4.62 per share, which equates to a total consideration of $46,200. Earlier this week SeaLink announced plans to acquire Transit Systems Group for an enterprise value of $635 million. Management believes the acquisition will be transformational. Based on this purchase, it appears as though this director is confident that the acquisition will be a success.
