Identifying ASX shares that are favourites with company insiders can help investors conduct their due diligence. Medical Developments International Limited (ASX:MVP) and Healthia Ltd. (ASX:HLA) are among the stocks that have recently seen heavy insider buying.
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Reading the insider confidence signal
When it comes to evaluating the best stocks to buy, investors can obtain valuable insights by tracking company insider share transactions.
When company insiders, such as executives and directors, buy-up shares in their company, it can provide strong signals of confidence going forward.
TipRanks provides a comprehensive list of daily company insider transactions to provide insight into whether senior leaders are buying or selling their company’s stock.
TipRanks also provides the Insiders’ Hot Stocks list, showcasing ‘Strong Buy‘ indicators, based on share transactions from those within the company.
Let’s take a detailed look at two ASX shares with Very Positive insider confidence signals.
Medical Developments’ share price forecast implies 92% upside
Medical Developments International Limited sells drugs, medical devices, and veterinary products. Company insiders have purchased AU$3.1 million worth of shares in the company over the past three months. The most recent insider purchase in the stock was by a director, Richard Betts, who bought shares worth more than AU$40,160.
According to TipRanks’ analyst rating consensus, MVP stock is a Moderate Buy. The average MVP share price target of AU$3.12 implies 92% upside potential.
Healthia’s share price prediction shows 58% upside
The healthcare services provider operates podiatry, physiotherapy, and optometry clinics. Healthia insiders have purchased AU$1.2 million worth of shares in the company over the past three months. The most recent insider purchase was by Divisional CEO, Colin Jonathan Kangisser, who bought shares worth more than AU$100,000.
According to TipRanks’ analyst rating consensus, HLA stock is a Strong Buy. The average HLA share price prediction of AU$2.50 implies over 58% upside potential.
Final thoughts
When company executives and directors are using their own money to purchase shares it can show a strong vote of confidence. Medical Developments and Healthia are not only company insider favourites, but they have also earned bullish TipRanks Smart Score ratings. Additionally, the shares are receiving positive mentions on financial blogs.
