ASX Companies Insiders Are Buying
It is commonly known that insider buying, management purchasing stock in the own firm, is an optimistic signal. Insiders have valuable insights into the company’s current operations and opportunities, so they are best placed to benefit from a timely, and legal, trade. Though it is certainly not enough to base your investment decision merely on these signals alone, below I’ve put together three stocks you should examine further.
MYOB Group Limited (ASX:MYO)
MYOB Group Limited develops and publishes software in Australia and New Zealand. Established in 1991, and now led by CEO Timothy Reed, the company size now stands at 1,500 people and with the stock’s market cap sitting at AUD A$1.90B, it comes under the small-cap stocks category.
MYOB Group Limited (ASX:MYO) is one of Australia’s large-cap stocks that saw some insider buying over the past three months, with insiders investing in more than 20 million shares during this period. In total, individual insiders own over 20 million shares in the business, which makes up around 3.25% of total shares outstanding.
The insider that recently bought more shares is Justin Milne (board member) .
The entity that bought on the open market in the last three months was
Colonial First State Asset Management (Australia) Limited. Although this is an institutional investor, rather than a company executive or board member, the insights gained from direct access to management as a large investor would make it more well-informed than the average retail investor. In this specific instance, I would classify this investor as a company insider.
Analysts anticipate an impressive double-digit top-line growth over the next three years, which appears to flow through to a large earnings growth rate of 86.84% from today’s level. If insiders believe these benefits are defensible, this could be a motivation for the net buying activity. More detail on MYOB Group here.
APN Outdoor Group Limited (ASX:APO)
APN Outdoor Group Limited operates as an outdoor advertising company in Australia and New Zealand. Started in 2012, and headed by CEO James Warburton, the company currently employs 224 people and with the company’s market cap sitting at AUD A$706.43M, it falls under the small-cap group.
APN Outdoor Group Limited’s (ASX:APO) insiders have invested more than 6 million shares in the small-cap stocks within the past three months. In total, individual insiders own less than one million shares in the business, or around 0.21% of total shares outstanding.
The entity that bought on the open market in the last three months was
Macquarie Group Ltd. Banking & Securities Investments Yarra Funds Management Limited. Although this is an institutional investor, rather than a company executive or board member, the insights gained from direct access to management as a large investor would make it more well-informed than the average retail investor. In this specific instance, I would classify this investor as a company insider.
Over the next three years, analysts expect a robust revenue growth of 11.29% from today’s level, which will drive the meaningful bottom-line growth of 25.31%. APO’s positive future sentiment could be a key driver of insiders ramping their shares if they believe the growth is not yet reflected in the current share price. Dig deeper into APN Outdoor Group here.
GBST Holdings Limited (ASX:GBT)
GBST Holdings Limited provides software products for the financial service sector. Started in 1984, and currently run by Robert DeDominicis, the company size now stands at 500 people and with the stock’s market cap sitting at AUD A$151.44M, it comes under the small-cap group.
GBST Holdings Limited (ASX:GBT) is one of Australia’s small-cap stocks that saw some insider buying over the past three months, with insiders investing in more than 2 million shares during this period. In total, individual insiders own over 9 million shares in the business, which makes up around 12.81% of total shares outstanding.
The entity that bought on the open market in the last three months was
Pinnacle Investment Management Limited. Although this is an institutional investor, rather than a company executive or board member, the insights gained from direct access to management as a large investor would make it more well-informed than the average retail investor. In this specific instance, I would classify this investor as a company insider.
Over the next three years, analysts expect a robust revenue growth of 23.01% from today’s level, which will drive the meaningful bottom-line growth of 189.74%. GBT’s positive future sentiment could be a key driver of insiders ramping their shares if they believe the growth is not yet reflected in the current share price. Continue research on GBST Holdings here.
For more stocks with high, positive trading volume by insiders, explore this interactive list of stocks with recent insider buying.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
