Every so often, I like to take a look to see 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 couple which have caught my eye:
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Betmakers Technology Group Ltd (ASX: BET)
According to a change of director's interest notice, one of this gambling technology company's non-executive directors has been buying shares this month. The notice reveals that Matt Davey picked up a total of 212,766 shares through on-market trades between 14 September and 15 September. The director paid an average of 40 cents per share, which equates to a total consideration of $85,106.40.
Mr Davey commented on the purchase. He said: "It's always an exciting part of the journey at this stage of a business. We have done a fantastic job as a company to get to a point where we are ready to start scaling up both domestically and internationally and it's great to be able to continue to demonstrate my support."
NEXTDC Ltd (ASX: NXT)
Another change of director's notice reveals that one of this data centre operator's non-executive directors has been buying a large number of shares this week. According to the notice, Dr Eileen Doyle bought 13,800 shares through an on-market trade on 17 September. Dr Doyle paid an average of $11.59 per share, which equates to a total consideration of $159,942.
These were the first shares that the director has bought after joining the company late last month. One broker that would support Dr Doyle's decision is Goldman Sachs. Earlier this week it reiterated its buy rating and $13.20 price target on the company's shares. The NEXTDC share price is changing hands for $11.82 this afternoon.
