5 potentially cheap ASX shares being bought by insiders

Insiders see value in these companies.

| More on:
Two excited woman pointing out a bargain opportunity on a laptop.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Insider buying often signals confidence in a company's future, and a few cheap ASX shares have caught investor attention recently due to notable insider activity.

This kind of buying activity can be a strong indicator of growth potential – especially when it comes from those with deep knowledge of the business. While each of these shares discussed here has faced recent challenges, the recent insider purchase could signal this belief.

Here's a look at these five cheap ASX shares being bought by insiders this week.

Created with Highcharts 11.4.3Deterra Royalties + Idp Education + Bubs Australia + Starpharma + Wam Leaders PriceZoom1M3M6MYTD1Y5Y10YALL0www.fool.com.au

IDP Education Ltd (ASX: IEL)

IDP Education has been facing headwinds, with its share price down 23% in 2024 and 37% over the past year. Changes to student visa rules have disrupted the student placement and education company's key markets.

Despite this, non-executive director Tracey Horton bought 1,300 shares on 7 June for around $15.15 each.

Further, Citigroup also purchased around 3.27 million IDP shares in June, bringing its stake to more than 18.87 million shares, or 6.77% voting power.

Currently, the seemingly cheap ASX share is valued at $15.37 apiece, having climbed 3% into the green so far this week.

Deterra Royalties Ltd (ASX: DRR)

Deterra Royalties recently experienced a 10% drop after announcing a significant acquisition in the lithium sector.

The company noted it made a $276 million offer to UK company Trident Royalties Plc in June, equal to roughly 93 cents per share.

Despite the initial market reaction, the company's shift towards green metals looks like it's being viewed favourably by institutional investors.

Mandatory filings show The Vanguard Group starting an initial position in Deterra, purchasing 26.59 million shares of the company through its various entities.

This sees it owning 5.029% of the company as of 21 June 2024. The cheap ASX share is priced at $4.02 each at the time of writing.

BUBS Australia Ltd (ASX: BUB)

Bubs Australia has been in the headlines following strong sales growth in the United States. According to my colleague Bernd, Bubs' weekly scan revenues have surpassed US$1 million, and the company has become the top-selling infant formula product on Amazon USA.

CEO Reginald Weine is optimistic about sustained demand and future growth. On 24 June 2024, Weine acquired 50,000 shares at $0.125 each. Bubs Australia shares are currently trading at $0.128 each, down 10% in the last month.

Starpharma Holdings Ltd (ASX: SPL)

Starpharma Holdings has also faced challenges in 2024. The cheap ASX share is down nearly 47% this year and 68% in the past 12 months.

Recent filings show that as of 21 June 2024, investment fund Allan Gray reduced its voting power to 9.28% after disposing of 5.35 million shares from its position this week.

Some of this new supply looks to have been soaked up by two directors – Lynda Cheng, and Robert Thomas – who this week purchased 110,555 shares at 9 cents per share, and 200,000 ordinary shares at 8.9 cents apiece respectively.

Currently, Starpharma shares are priced at $0.087 each.

WAM Leaders Limited (ASX: WLE)

WAM Leaders has seen steady insider buying from director Geoffrey Wilson. Mr Wilson is also the chairman of listed investment company (LIC) WAM Capital Ltd (ASX: WAM).

Between 24 June and 27 June 2024, Wilson acquired over 18,000 shares. The purchases were made on market across several trades, ranging in size from $11.1 million to $15.6 million.

The investments bring Wilson's stake to 13.05 million shares in the cheap ASX share. Today, WAM Leaders is valued on market at $1.28 apiece with a trailing dividend of 9.1 cents per share.

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Idp Education. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Cheap Shares

Image from either construction, mining or the oil industry of a friendly worker.
Cheap Shares

Buy these 2 impressive ASX shares in June: experts

Experts are fans of these businesses. Here’s why.

Read more »

Broker working with share prices on computers.
Cheap Shares

Why UBS thinks Magellan shares could deliver a 15% return in the next year

The broker is excited about this stock.

Read more »

Happy work colleagues give each other a fist pump.
Cheap Shares

Morgans names 2 cheap ASX 200 shares to buy

The leading broker thinks these shares are being undervalued by the market.

Read more »

Happy couple looking at a phone and waiting for their flight at an airport.
Cheap Shares

2 ASX 300 shares to buy this month: experts

These stocks could be leading opportunities according to one expert.

Read more »

A senior investor wearing glasses sits at his desk and works on his ASX shares portfolio on his laptop2
Cheap Shares

Is this beaten-up stock the best value buy in the ASX 200?

An expert has outlined why this stock is an attractive opportunity.

Read more »

A woman smiles as she sits on the bus using her phone and listening to music through headphones.
Cheap Shares

2 compelling ASX shares on sale right now

These businesses look like low-priced opportunities.

Read more »

Smiling man sits in front of a graph on computer while using his mobile phone.
Cheap Shares

2 ASX shares that I rate as cheap buys after the market rally

I still rate these stocks as bargain buys after shares recovered from April’s sell-off.

Read more »

A woman sits in a quiet home nook with her laptop computer and a notepad and pen on the table next to her as she smiles at information on the screen.
Cheap Shares

Is it time to buy these 2 beaten-up ASX shares in 2025?

I’m bullish about these two ASX shares that have gone through a sell-off.

Read more »