Insiders have been selling these 3 ASX shares

On Thursday I had a quick look at a few shares which had experienced significant insider buying this month. Insider buying is generally seen as a bullish signal by many investors as few would know how a company is performing better than a director.

For the same reason, when directors are shown to be selling shares it is often interpreted as a bearish signal.

With that in mind, here are three companies which have experienced insider selling this week:

NIB Holdings Limited (ASX: NHF)

According to a change of director’s interest notice this afternoon, nib’s managing director, Mr Mark Fitzgibbon, has offloaded 70,000 nib shares on market this week for a total of $475,371.56. The company has advised that the sale was made to “meet a personal income tax obligation resulting from past awards of remuneration for his role in the form of nib shares.” Mr Fitzgibbon still has a significant holding in the company despite this sale.

Netcomm Wireless Ltd (ASX: NTC)

Founder and strategic adviser David Stewart has sold 340,000 shares on market this week according to a notice released today. Mr Stewart retired as the broadband technology company’s CEO at the end of 2016 but remains close to the company. I wouldn’t be too concerned with this share sale, Mr Stewart still has a holding of 21 million shares.

Ramsay Health Care Limited (ASX: RHC)

According to a notice filed with the ASX today, non-executive director Rod H McGeoch has sold 4,500 shares for a total of $283,500. This sale reduces Mr McGeoch’s holding by approximately 7.5% to 54,975 shares. No reason was given for the share sale. Considering its weak performance of late, this doesn’t fill me with a lot of confidence. But I wouldn’t be too alarmed unless fellow directors started to sell shares as well.

Finally, here are three quality shares that I would be buying up in bulk if I were one of their directors.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended NIB Holdings Limited and Ramsay Health Care Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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