Insiders have been buying Nearmap (ASX:NEA) and this ASX share

Insiders have been buying Nearmap Ltd (ASX:NEA) and this ASX share. Here's what you need to know…

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Every so often, I like to take a look to see 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 recently. Here are a couple which have caught my eye:

Nearmap Ltd (ASX: NEA)

According to a change of director's interest notice, one of this aerial imagery technology and location data company's directors has been taking advantage of recent weakness in its share price to top up his position.

The notice reveals that non-executive director and former chair, Ross Norgard, picked up 500,000 shares through an on-market trade on 31 March. Mr Norgard paid an average of $2.042 per share, which equates to a total consideration of just over $1 million. This purchase lifted its holding to a total of almost 24.1 million shares.

With the Nearmap share price down over 21% from its February high, it appears as though Mr Norgard sees value in them at this level.

Netwealth Group Ltd (ASX: NWL)

A couple of change of director's interest notices reveal that this wealth management platform provider's directors have been buying shares. This appears to have been driven by a significant pullback in the Netwealth share price recently following an update on its deposit arrangement with Australia and New Zealand Banking GrpLtd (ASX: ANZ).

The notice reveals that independent director Sally Freeman picked up 9,000 shares for $126,000 on 29 March and Chairman Tim Antonie purchased 5,000 shares for $70,350 on 26 March. This represents purchase prices of $14.00 and $14.07, respectively. Both purchases were made on-market.

The good news for investors is that the Netwealth share price is currently fetching $13.98. This means you could invest at an even cheaper price than what these directors paid.

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Nearmap Ltd. The Motley Fool Australia owns shares of Netwealth. The Motley Fool Australia has recommended Nearmap Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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