3 ASX Growth Companies Directors Are Investing In Right Now

When corporate insiders buy shares of their own companies, it can be a powerful signal for investors. These leaders often have unique insights into their company’s operations and future potential, making their actions worth paying attention to. Here’s a look at three ASX Growth companies where directors have recently made significant investments.

1. Endeavour Group Ltd (ASX: EDV)

Despite recent challenges, Endeavour Group, the operator of Dan Murphy’s and BWS, has drawn confidence from its independent chair, Ari Mervis. On November 14, Mervis purchased 100,000 shares at $4.27 each, making a bold $640,620 investment.

This move came after a trading update earlier in the month revealed shrinking operating margins. Despite the dip, Mervis’s investment reflects long-term confidence in the business.

Currently, Endeavour shares are trading at $4.34. Analysts at Goldman Sachs have placed a target price of $5.50, suggesting a potential 27% upside. If this projection holds, Mervis’s investment may prove to be a savvy move.

2. Stockland Corporation Ltd (ASX: SGP)

Stockland Corporation has enjoyed a strong performance, with its stock climbing 25% over the past year. However, two of its directors, Robert Johnston and Adam Tindall, have decided there’s still room for growth.

Earlier this week, Johnston and Tindall purchased $207,183 and $208,000 worth of shares, respectively. Their investments come on the heels of good news for Stockland, which recently upgraded its FY25 guidance.

The company now anticipates funds from operations between 33 to 34 cents per security, driven by the regulatory approval of a $1.06 billion residential communities acquisition. These insider moves highlight confidence in Stockland’s continued success.

3. Computershare Ltd (ASX: CPU)

Financial administration leader Computershare has also attracted insider buying. Independent director Gerrard Schmid recently invested $291,418 in the company, following an earlier $150,000 investment in August.

Computershare’s stock has risen 35% over the past year, significantly outperforming the broader S&P/ASX 200 Index’s 18% gain in the same period. Schmid’s repeated investments indicate a strong belief in the company’s growth trajectory.

Why Insider Buying Is Important

When corporate insiders buy shares, it’s often a sign of their confidence in the company’s future. While no investment comes with guarantees, insider purchases can be a valuable indicator for investors.

As always, it’s essential to conduct thorough research and consult with a financial advisor before making investment decisions.