The Altium Limited (ASX: ALU) share price is up 4.1% to $21.77 on a day that the benchmark S&P/ ASX200 (ASX: XJO) is up 0.6%, after it was revealed that an Altium insider bought around US$100,000 worth of shares 'on-market' on December 28, 2018.
As the old share market saying goes insiders may sell shares in a business for any number of reasons (they think it's over-valued, have been cooking the books, need to buy a house, settle a divorce, etc) but they generally only buy for one reason.
That reason is they believe the shares are good value based on the company's performance and outlook.
As such the director buying looks a positive omen for Altium investors ahead of the software-as-a-service business reporting its financial results for the six-month period ending December 31 2018 in around 6 weeks' time in February 2019.
Altium is already many growth investors' favourite thanks to its strong track record and due to the rising demand from companies for its software that helps developers design the printed circuit boards that help connect everyday electronic devices to the internet.
Indeed, the growth of the "Internet of Things' (IoT) is often touted as the next great technological trend to profit from after cloud (online data storage) computing.
No business on the ASX looks better positioned to benefit from rising demand for IoT related products than Altium and it may be about to report another exceptionally strong 6 months of growth after handing in one of the strongest full year reports of FY 2018 among ASX companies.
Others to watch in the ASX tech or software space include Bravura Solutions (ASX: BVS) and Xero Limited (ASX: XRO).
