The Motley Fool

The Dicker Data COO is backing up the truck for more shares again

A lot of investors like to follow company director buying or selling of shares to get a handle on what companies may be under or over-valued.

After all company directors should have a better idea than anyone whether a business is performing well and likely to keep doing so over the next 12 months. 

Director selling can be for many reasons for example to pay tax bills, settle a divorce, buy a huge house, or just to take some chips off the table.

But no one buys shares in a company if they think the share price is about to fall. 


And no one should have a better idea than how an IT hardware distribution business is travelling than its own COO who has been with the company for over 5 years. 

On August 29 the Dicker Data Ltd (ASX: DDR) COO, Vladimir Mitnovetski, bought another 20,000 shares on market at $6.90 a share to take his total holding to nearly 673,000 shares.

This is notable because we can see the COO already had a substantial part of his net worth tied up in the business, so if he’s investing more of his own cash it suggests he thinks the shares are going higher in time.

Dicker Data shares are still heavily owned by other insiders some of whom have also added to their holdings in recent years.

The company just grew its half-year net profit after tax 50.5% to $23.8 million and looks likely to smash its full year guidance.

It’s also investing heavily in a huge new distribution centre in Sydney to support its long-term growth ambitions. 

As such it’s possible to see why the COO feels the shares will go higher. 

Other companies to see director buying on market over the last week include Wisetech Global Ltd (ASX: WTC) and Corporate Travel Management Ltd (ASX: CTD).

If you're looking for dividends and growth may I suggest The Motley Fool’s #1 BANK STOCK for 2019 as well as Dicker Data, I personally think they're both superb businesses to own...

BRAND NEW! For a limited time, The Motley Fool Australia is giving away an urgent new investment report with all the details on our #1 BANK STOCK for the next 12 months and beyond…

Now, if you’ve been around this site for any length of time, you know The Motley Fool usually shuns bank shares.

But we’ve recently discovered a ‘hidden in plain sight’ bank stock with what we think is mouth-watering potential.

With the company boasting nearly 25% net profit growth every year for the last 5 YEARS…

And the shares paying a fully franked dividend that beats the pants off term deposits!

So if you like steady, high-growth income plays – we’ve got you covered!

You’re invited. Simply click the link below to discover our #1 ASX bank stock to profit in 2019. To scoop up your FREE copy, simply click the link below right now. But you will want to hurry – this free report is available for a brief time only.


Motley Fool contributor Tom Richardson owns shares of Corporate Travel Management Limited, Dicker Data Limited, and WiseTech Global.

You can find Tom on Twitter @tommyr345

The Motley Fool Australia owns shares of and has recommended Corporate Travel Management Limited and Dicker Data Limited. The Motley Fool Australia owns shares of WiseTech Global. 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.

FREE REPORT: Five Cheap and Good Stocks to Buy now…

Our Motley Fool experts have FREE report, detailing 5 dirt cheap shares that you can buy today.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading near a 52-week low all while offering a 2.7% fully franked yield…

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.