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.
Instead of SEEK I would be buying these future tech stars.
We’re living in one of the most exciting times in investing history. Innovation and a booming culture of entrepreneurship are constantly creating new companies with the potential to make forward-thinking investors very rich. Now more than ever, one small, smart investment could make a huge difference to your wealth.
That’s why at The Motley Fool we’ve been scrutinizing the ASX to uncover the kinds of companies that we believe could turn into the next Atlassian.
We’ve found three exciting companies that we believe re poised to perform in the new year. Click here to uncover these ideas!
Motley Fool contributor James Mickleboro owns shares of SEEK Limited. The Motley Fool Australia owns shares of and has recommended Dicker Data Limited. The Motley Fool Australia has recommended SEEK 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.