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:
Adairs Ltd (ASX: ADH)
According to a change of director’s interest notice, one of this home furnishings retailer’s non-executive directors has been buying shares on-market this week. This follows its sharp share price decline after the release of a disappointing trading update at the end of last week. The notice reveals that Trent Peterson bought 150,000 shares through an on-market trade on June 26. He paid a total of $211,224.15, which equates to an average of $1.41 per share. This lifted his holding to a total of 19,560,922 shares.
Caltex Australia Limited (ASX: CTX)
A change of director’s interest notice reveals that the managing director and chief executive officer of this embattled fuel retailer has been buying its shares this week. According to the notice, Julian Segal picked up 4,150 shares through an on-market trade on June 26. Mr Segal paid a total of $99,547.20 for the shares, which increased his holding to a total of 717,724 shares. The Caltex share price was hammered last week after the release of a disappointing trading update.
Dicker Data Ltd (ASX: DDR)
A number of insiders have been buying the shares of this computer hardware and software distributor this week. According to a series of change of director’s interest notices, Vladimir Mitnovetski picked up 15,000 shares for $4.8166 per share on June 25, Mary Stojcevski bought 6,000 shares at $4.93 per share on June 24, and Fiona Brown snapped up 3,500 shares on June 27 for $5.13 per share. The Dicker Data share price has been on fire in 2019, but these directors appear to believe it can still go higher.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Dicker Data 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.