Last week, AGL Energy Limited (ASX: AGL) revealed that yet another insider has been buying its shares.
According to the release, non-executive director, Mark Twidell, picked up 7,500 AGL shares for an average of $8.85 per share.
This represents a total consideration of just over $66,000. It also means that this is the ninth time that insiders have bought shares this year.
Given that insider buying is often seen as a bullish indicator, should you be following their lead and doing the same?
Should you be buying AGL shares?
While the insider buying is encouraging, most analysts donât see a lot of value in AGL shares at current levels.
For example, although Macquarie has an outperform rating on the companyâs shares, its price target of $8.31 has now been surpassed.
Elsewhere, last week, the team at Morgan Stanley retained their equal-weight rating with an $8.88 price target. This is broadly in-line with where AGL shares are trading this afternoon.
And over at Morgans, its analysts currently have a hold rating and $6.89 price target. This implies potential downside of 22% for AGL shares from current levels.
The broker is sitting on the fence until it has confidence that the company is moving onwards and upwards from its troubles. It said:
We anticipate increasing dividends as earnings begin to recover in the next 12 months however we think the market will want to see clear evidence of this before it regains confidence in the company and the sector.
The post 9 directors have bought up AGL shares in 2023. Should you jump in too? appeared first on The Motley Fool Australia.
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More reading
- 3 ASX 300 shares being bought up by insiders
- Are AGL shares the most underrated ASX 200 stock opportunity?
- 6 excellent ASX 200 dividend shares that aren’t banks or miners
- Here’s how much I would need to invest in AGL shares to achieve $150 in monthly income
- 3 things that could tank the AGL share price
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. 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.
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