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:
Estia Health Ltd (ASX: EHE)
According to a change of director’s interest notice, one of this aged care operator’s non-executive directors has been buying shares recently. The notice reveals that Karen Penrose picked up 3,500 shares through an on-market trade on November 13. The executive paid an average of $2.83 per share. This purchase lifted Penrose’s holding to a total of 22,333 Estia Health shares. It appears as though this director still sees a lot of value in Estia Health’s shares despite their 27%+ gain so far in 2019.
Flight Centre Travel Group Ltd (ASX: FLT)
A couple of change of director’s interest notices show that this travel agent giant has experienced a bout of insider buying. According to the notices, John Eales and Colette Garnsey have both bought shares through on-market trades this week. On November 11 John Eales picked up 2,000 shares for a total consideration of $79,571.95. Whereas, on November 14, Colette Garnsey bought 1,250 shares for a total consideration $50,825.87. This brought their Flight Centre holdings up to 5,000 and 4,250 shares, respectively.
Pendal Group Ltd (ASX: PDL)
One of this investment management company’s non-executive directors has been buying shares this week. According to a change of director’s interest notice, Sally Collier picked up 10,000 shares through an on-market trade on November 11. Collier paid an average of $7.925 per share, which equates to a total consideration of $79,250. This purchase lifted the non-executive director’s holding to a total of 24,000 Pendal shares.
The post Insiders have been buying Flight Centre and these ASX shares appeared first on Motley Fool Australia.
Finally, if I were a director of these companies, I would be buying them due to their attractive valuations.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Flight Centre Travel Group Limited. 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.
The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2019