These 4 ASX shares have been gobbled up by insiders over the last few months. We take a look at what recent events could be driving it.
The post Here are 4 ASX shares that insiders have been buying recently appeared first on The Motley Fool Australia. –
From time to time, I like to take a look at what ASX shares insiders have been buying and selling. Although it’s not a definitive indicator to buy or sell a share, it can help to make a more informed decision.
Insider buying can demonstrate a strong belief in the company. At a minimum, it shows those at the top have skin in the game.
Here are some shares that have seen insider buying over the last few months.
2 ASX technology shares
ELMO Software Ltd (ASX: ELO)
The human resources and payroll platform provider announced to the ASX a change in director’s interest on 17 February. Independent non-executive director, Leah Graeve, made an on-market purchase of 1,531 shares, amounting to $9,924.66.
This occurred the day after ELMO Software released its half-year results. Despite the company reporting a 29.3% growth in revenue for the period, shares sold off the next day. Potentially, this provided an appealing price for the director to load up.
The ELMO Software share price is still trading below its pre-COVID levels, as are many other ASX shares. In the past 12 months, shares have fallen 27%.
Appen Ltd (ASX: APX)
When looking at the last 6 months for the artificial intelligence data services company, it certainly hasn’t been pretty. Disappointments and downgrades have wiped 51% from the Appen share price since September.
However, that’s didn’t stop non-executive director, Vanessa Liu, from grabbing $25,000 worth of shares on Christmas Eve. The disclosure to the ASX states the purchase was for 1,000 shares at $25.00 a pop.
As it turns out, the pre-Christmas purchase wasn’t much of a gift, as the shares have collapsed a further 33.5% since.
The Appen share price has fallen 25% in the past 12 months.
2 ASX medical shares
Nanosonics Ltd (ASX: NAN)
Nanosonic shares have been climbing this week after the disinfectant technology company posted its half-year results last week. Initially, the market reacted negatively to the slower growth, which was impacted by COVID-19.
Two days later, non-executive director Lisa E. McIntyre loaded up with 8,150 shares. As shown in the disclosure to the ASX, the total investment amounted to $49,981. Only a day beforehand Morgans upgraded Nanosonics’ shares to an add rating with a $6.69 price target.
The Nanosonics share price has also underperformed the S&P/ASX 200 Index (ASX: XJO), with the company’s shares falling 5.2% in 12 months.
Ecofibre Ltd (ASX: EOF)
The Ecofibre share price has been under pressure this month after the hemp health product maker announced disappointing half-year results. The company reported a 49% reduction in revenues and a substantial $5.5 million bottom-line loss.
As the share price fell this month, so did the value of CEO Eric Wang’s recent purchase. In December, Eric Wang disclosed the purchase of 350,000 shares at a total value of $745,182. The value has since diminished to $446,250 based on today’s current price.
The Ecofibre share price has fallen 49.6% in the past year.
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Mitchell Lawler owns shares of Appen Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Elmo Software. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Appen Ltd and Nanosonics Limited. The Motley Fool Australia has recommended Elmo Software and Nanosonics Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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