Insiders have been buying Bank of Queensland and these ASX shares

Insiders have been buying Bank of Queensland Limited (ASX:BOQ) and these ASX shares…

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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:

Bank of Queensland Limited (ASX: BOQ)

According to a change of director's interest notice, the chairman of this regional bank has been buying shares on market this week. The notice reveals that Patrick Allaway picked up 20,000 shares through an on-market trade on October 21. Mr Allaway paid an average of $9.11 per share, which equates to a total consideration of $182,200. This purchase lifted the chairman's holding by two-thirds to 50,000 shares. The Bank of Queensland share price is down 4.5% this year, compared to a 21% gain by the S&P/ASX 200 index. This sizeable investment by the chairman may be an indication that he believes its shares have been oversold.

IOOF Holdings Limited (ASX: IFL)

A change of director's interest notice reveals that this financial services company has experienced some insider buying this week. According to the notice, independent non-executive director Elizabeth Flynn bought 6,729 IOOF shares on-market for an average of $7.44 per share on October 21. This works out to be a total consideration of $50,063.76. Following this purchase, Ms Flynn has a total interest of 33,157 shares. Ms Flynn appears to still see a lot of value in IOOF's shares despite their strong recovery in 2019.

Reject Shop Ltd (ASX: TRS)

According to a change of director's interest notice, one of this discount retailer's non-executive directors has been buying shares recently. The notice advises that Zachary Midalia picked up 14,600 Reject Shop shares through an on-market trade on October 24. Mr Midalia paid an average of $2.36 per share or a total consideration of $34,456. Following this purchase, the director's holding has lifted by a massive 360% to 18,640 shares. Based on his investment, Mr Midalia appears confident that Reject Shop is over the worst of its issues now.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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