At the end of each 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 true value better than its own directors.
Three shares which have reported meaningful insider buying this week are listed below:
Adairs Ltd (ASX: ADH)
According to a change of director's interest notice, non-executive director Trent Peterson has topped up his considerable holding this week. Mr Peterson snapped up a further 50,000 shares at a price of $1.70 per share. This works out to be a total consideration of approximately $85,000 and lifts his personal holding to 140,000 shares. The executive also has an indirect interest totalling around 19 million shares. I think Adairs' shares are great value right now and would suggest investors consider following his lead.
Lendlease Group (ASX: LLC)
This international property and infrastructure company has seen a high level of insider buying this week. According to no less than five change of director's interest notices, the company's directors have taken advantage of its share price decline to pick up a considerable number of shares. The largest purchase of shares came from CEO Stephen McCann. He picked up 70,000 shares at an average of $13.30 per share. This works out to be a total consideration of approximately $930,000. Chairman Michael J Ullmer was also in on the action. Mr Ullmer picked up 50,000 shares at an average of $13.57 per share. This equates to a total cash consideration of approximately $678,000. These directors appear to see the selloff as a buying opportunity.
Monadelphous Group Limited (ASX: MND)
According to a change of director's interest notice, independent non-executive director Helen Gillies has bought 4,000 shares of this engineering company this week. Gillies paid a total of $55,990.40 for the shares, equating to an average of $14.00 per share. This purchase almost doubled her holding to 8,161 shares. The Monadelphous share price has fallen 20% this year and to a level that this director appears to believe is good value.
