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:
Bendigo and Adelaide Bank Ltd (ASX: BEN)
According to a change of director’s interest notice, one of this regional bank’s directors has been buying shares this month. The notice reveals independent director Vicki Carter picked up 6,015 shares through an on-market trade on 10 June 2020. These cost an average of $7.98 per share, which equates to a total consideration of $48,000.
With the bank’s shares down almost 40% from their 52-week high, it appears as though this director sees value in them at the current level. One broker that would agree is Ord Minnett. Last week its analysts upgraded Bendigo and Adelaide Bank’s shares to an accumulate rating with an $8.10 price target.
Ramsay Health Care Limited (ASX: RHC)
A change of director’s interest notice reveals that one of this private hospital operator’s non-executive directors has just made a sizeable purchase of shares. According to the notice, Dr Claudia Süssmuth Dyckerhoff PhD purchased 2,500 Ramsay shares through an on-market trade on 12 June 2020. Dr Dyckerhoff paid an average of $66.25 per share, which equates to a total consideration of $165,625.
As with Bendigo and Adelaide Bank, the Ramsay share price is down materially from its high. This has been driven partly by the disruption to its operations caused by the pandemic. Interestingly, Ord Minnett also appears to see this share price weakness as a buying opportunity. Earlier this month its analysts reiterated their accumulate rating and lifted their price target on the company’s shares to $78.25.
And here are more top shares which I think insiders should be buying…
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More reading
- Why the Healius share price will be in the spotlight tomorrow morning
- 2 top ASX dividend shares for income in 2020
- These ASX bank stocks just got upgraded by top brokers to “buy” – and they aren’t the big four
- Why Bendigo and Adelaide Bank, BWP, G8 Education, & Westpac are zooming higher
- Where to invest $20,000 into ASX shares immediately
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Ramsay Health Care 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.
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