If a director or senior manager at a company is buying a significant amount of shares on market a lot of investors take it as a bullish sign.
After all no insiders going to buy shares in a company if they expect the price to fall over the short or medium term.
One business that reported one of the strongest results this August profit reporting season is software-as-a-service star Wisetech Global Ltd (ASX: WTC). Its shares soared in the days after it reported and have kept climbing to near record highs at $37 today.
In total the stock is up around 75% over just the past year despite many professional fund managers labelling it overvalued using any number of different valuation metrics.
A lot of its growth has come about by acquisitions which can make growth numbers look impressive over the short term, but whether or not the acquisitions actually provide a return on investment over the medium term is not yet certain.
However, this has not deterred company insider and director Christine Holman from splashing out around $100,000 on market to buy 3,000 Wisetech shares at $32.67 a share.
Holman is chair of Wisetech's audit and risk management committee which should give her some excellent oversight as to how acquisitions are integrating and performing.
Moreover she's already made nearly a nifty $15,000 profit on her 3,000 Wisetech shares in a couple of days.
Other high-flying tech stocks on the local market include Altium Limited (ASX: ALU) and Afterpay Touch Group (ASX: APT).
