I think it is well worth keeping a close eye on which shares have experienced meaningful insider buying.
This is because insider buying is generally regarded as a bullish indicator, as few people know a company better than its own directors.
A number of shares have reported meaningful insider buying again this week. Here are a couple that caught my eye:
Accent Group Ltd (ASX: AX1)
According to a change of director's interest notice, one of this footwear-focused retail group's non-executive directors has taken advantage of a pullback in its share price to buy shares. The notice reveals that New York-based Joshua Lowcock has bought 3,105 shares through an on-market trade on March 3. Mr Lowcock paid an average of $1.61 per share, which equates to a modest ~$5,000 investment. These are the only shares the director currently owns. The Accent Group share price is currently changing hands at $1.41, down almost 36% from the 52-week high of $2.21 it reached just two weeks ago. I think this makes its shares a bit of a bargain, so I can't say I'm surprised by the insider buying.
GPT Group (ASX: GPT)
A change of director's interest notice reveals that this diversified property company's chairman, Vickki McFadden, has been buying shares on-market this week. McFadden bought 25,000 shares on March 4 for an average of $5.72 per share. This works out to be a total consideration of $143,000 and lifted the chairman's holding to a total of 77,525 shares. This isn't the only insider buying shares. Earlier this week there was also a purchase of 10,000 shares by its director Tracey Horton AO. Ms Horton paid an average of $5.83 per share, which equates to a total consideration of $58,300. This could prove to be good timing, as Goldman Sachs has just upgraded GPT Group's shares to a buy rating with a price target of $5.97. It believes its defensive qualities are underappreciated by the market.
