Once a week I like to look at which shares have experienced meaningful insider buying.
This is because insider buying is often regarded as a bullish indicator, as few people know a company and its intrinsic value better than its own directors.
Three shares which have reported meaningful insider buying this week are listed below:
Dicker Data Ltd (ASX: DDR)
A change of director's interest notice reveals that the COO of this distributor of information technology products, Vladimir Mitnovetski, has been buying shares on-market this week. According to the notice, Mr Mitnovetski picked up 25,000 shares through an on-market trade on 23 May. The executive paid an average of $4.90 per share or a total consideration of $122,500. This purchase increased his holding to a total of 628,713 shares. Mr Mitnovetski appears to see value in Dicker Data's shares despite their impressive gain over the last 12 months.
National Australia Bank Ltd (ASX: NAB)
According to a change of director's interest notice, this banking giant's CEO, Philip Chronican, has been buying shares on-market this month. The notice reveals that Mr Chronican bought 9,000 shares on 16 May, bringing his total holding to 40,000 shares. The CEO paid a total of $217,403 for the shares, which equates to an average price of $24.16 per share. This certainly was good timing by Mr Chronican. At present the NAB share price is trading at $25.55, which is almost 6% higher than his buy price.
OZ Minerals Limited (ASX: OZL)
The chairman of this leading copper miner has been buying shares on-market this week. According to a change of director's interest notice, Rebecca McGrath picked up 4,900 OZ Minerals shares through an on-market trade on 21 May. The chairman paid an average of $9.21 per share, which equates to a total consideration of $45,129. This purchase increases McGrath's holding to a total of 42,835 shares.
