Insider buys $215k of Westpac shares. Should you invest?

Do analysts think you should buy shares in this big four bank like one of its insiders? Let's find out.

| More on:
Woman using a pen on a digital stock market chart in an office.

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

sdf

I always think that it can be useful for investors to keep an eye on which shares are experiencing 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 directors.

If they are buying, it could be a sign that they are confident in the direction the company is heading and/or see value in its shares.

With that in mind, let's look at some meaningful insider buying over at Westpac Banking Corp (ASX: WBC) and what that could mean for the big four bank's shares.

Who is buying Westpac shares?

According to a change of director's interest notice, Westpac's independent non-executive director, Andy Maguire, has picked up his first shares in the bank since joining the company in July 2024.

Upon his appointment, Westpac noted that Maguire has more than 35 years' experience in financial services and began his career in banking at Lloyds Banking Group.

From 2014 to 2020, he was group Chief Operating Officer at HSBC Holdings plc (NYSE: HSBC) with responsibility for operations, technology, real estate, change and transformation and operational resilience.

He is currently chairman of UK banking software fintech Thought Machine Group and also an independent non-executive director of AIB Group plc. It is a financial services group operating predominately in the Republic of Ireland and the UK.

Commenting on his appointment last year, Westpac's chairman, Steven Gregg, said:

Andy is a highly respected global leader in digital transformation. His deep experience in technology infrastructure in the banking sector will further strengthen the Board and complement the skills of existing Directors. In particular, Andy's capabilities will be a valuable asset for Westpac as we execute our technology simplification through the UNITE program.

Clearly Maguire knows a thing or two about the banking sector. So, his purchase of Westpac shares could be a positive signal for investors.

What did he buy?

The notice reveals that the independent non-executive director bought 6,615 Westpac shares for an average of $32.3978 per share.

This equates to a total consideration of approximately $215,000.

One broker that would be supportive of this purchase is UBS. Last month, its analysts put a buy rating and $37.00 price target on the big four bank's shares.

This implies potential upside of 13% from current levels and would value those 6,615 Westpac shares at approximately $245,000.

Time will tell if its shares get to that level.

HSBC Holdings is an advertising partner of Motley Fool Money. Motley Fool contributor James Mickleboro has positions in Westpac Banking Corporation. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended HSBC Holdings. 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 Bank Shares

A man holds his hand under his chin as he concentrates on his laptop screen and reads about the ANZ share price
Bank Shares

Could the growth of Kiwibank impact ANZ shares?

Could a competitor hurt ANZ’s outlook?

Read more »

Shocked office worker staring at computer screen with colleagues working in the background.
Bank Shares

Why CBA shares could keep on rising

Can the ASX banking giant continue to defy analyst expectations?

Read more »

A man looking at his laptop and thinking.
Share Gainers

Thinking of selling your CBA shares? This expert says you should hold on

CBA shares are up by about 80% since November 2023.

Read more »

A young woman holds an open book over her head with a round mouthed expression as if to say oops as she looks at her computer screen in a home office setting with a plant on the desk and shelves of books in the background.
Bank Shares

The catalysts that could bring CBA shares back to earth

CBA is now the world's most expensive banking stock.

Read more »

A money jar filled with coins, indicating an investment return from an ASX dividend share
Bank Shares

Is the CBA share price a buy for passive dividend income?

CBA is one of the biggest dividend payers in Australia. Is it a good buy?

Read more »

a woman looks exhausted and overwhelmed as she slumps forward into her hand while looking at her laptop screen.
Bank Shares

What Microsoft's lost decade could mean for CBA shares

Could CBA shares be worth the same in 10 years time?

Read more »

Woman calculating dividends on calculator and working on a laptop.
Bank Shares

When does Macquarie expect Westpac to cut its dividend?

Here's the latest forecast for this banking giant's dividend.

Read more »

A young woman sits at her desk in deep contemplation with her hand to her chin while seriously considering information she is reading on her laptop.
Bank Shares

When will CBA shares stop rising? CSL might give us a clue

CSL's history might tell us what's in store for CBA.

Read more »