At the end of each week I like to look at which shares have experienced insider buying.
This is because I believe insider buying is a bullish indicator as few should know a company, its industry, prospects, and true value better than its own directors.
Three shares which have reported meaningful insider buying this week are listed below:
Aveo Group (ASX: AOG)
According to a change of director's interest notice, non-executive chairman Seng Huang Lee has been busy buying this aged care company's shares this week. Mr Lee picked up a total of 7,239,374 shares through on-market trades for an average price of $1.98. This equates to a total consideration of approximately $14.3 million and increases the Malaysian billionaire's holding to a total of 139,039,289 shares. These purchases are certainly a vote of confidence ahead of the Royal Commission into the aged care sector.
Dicker Data Ltd (ASX: DDR)
A change of director's interest notice reveals that this wholesale computer software and hardware distributor's chief operating officer, Vladimir Mitnovetski, has bought shares on-market this week. Mr Mitnovetski appears to have seized on the recent market volatility to increase his holding by 37,123 shares at an average price of $2.96 per share. This $110,000 purchase brings the director's holding up to a total of 442,834 shares. I think income investors ought to consider following Mr Mitnovetski's lead by picking up shares this week.
SEEK Limited (ASX: SEK)
Non-executive director, Michael Wachtel, has picked up his first shares in this job listings company since joining the board last month. Mr Wachtel picked up 4,000 shares through an on-market trade for an average price of approximately $20.37 or a total consideration of $81,480. Incidentally, this purchase price is just a touch ahead of a price target placed on SEEK's shares by Morgans this morning. Morgans declared SEEK as a hold with a price target of $20.31. I would agree with this recommendation.
