Insiders Are Buying Greencross And More Walter Gay March 28,...

Insiders Are Buying Greencross And More​

Walter Gay March 28, 2018
Insiders are buying, but should you? When company executives throw more of their wealth in their company, increasing their risk of exposure to one particular entity, sends a bullish signal that they are confident about that company’s future. This is a strong indicator that the company’s future growth outlook may not be adequately captured in the company’s share price, in insiders’ eyes. In this article, I’ve picked out three stocks insiders have been accumulating over the past three months.
Greencross Limited (ASX:GXL)

Greencross Limited, an integrated pet care company, provides veterinary services. Established in 1994, and run by CEO Simon Hickey, the company employs 4,952 people and with the company’s market capitalisation at AUD A$619.57M, we can put it in the small-cap stocks category.
Greencross Limited’s (ASX:GXL) insiders have invested more than 16 million shares in the small-cap stocks within the past three months. In total, individual insiders own over 16 million shares in the business, which makes up around 13.2% of total shares outstanding. The entity that bought on the open market in the last three months was Global Alpha Capital Management Ltd. Macquarie Group Ltd. Banking & Securities Investments Macquarie Investment Management Limited Matthews International Capital Management LLC. 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. Greencross’s shares ranged between A$6.48 and A$5.26 over the past three months. This suggests moderate volatility with a share price movement of 23.19%, which could be enough of a reason to trade on if insiders believe the market has mispriced their companies’ shares.

Article from Simply Wall Street. They currently have a $6.45 fair valuation on Greencross.​