Paladin Energy Ltd (ASX: PDN) shares have started the week strongly.
In morning trade, the uranium developer's shares are up a solid 4.5% to $1.03.
Why are Paladin Energy shares rising?
Investors have been buying the company's shares this morning for a couple of reasons.
One is yet another gain in uranium prices on Friday, the other is insider buying.
Insider buying is usually regarded as a bullish indicator. The theory is that as few people should know a company better than its own directors, and if they are buying, then it could be a sign that things are going well and they expect those shares to increase in value.
What makes this insider buying particularly interesting is that Paladin Energy shares are up materially this year and are trading within touching distance of a decade high. It's normally at times like this that insiders are selling shares, not buying them.
What did the company report?
After the market close on Friday, Paladin Energy released a change of director's interest notice for its non-executive director, Lesley Adams.
According to the notice, Adams snapped up 100,000 shares through an on-market trade on Wednesday of last week. The non-executive director paid an average of 97.5 cents per share, which equates to a total consideration of $97,500.
These are the first Paladin Energy shares that Adams has bought since joining the company in May of this year. In hindsight, she may be regretting not buying them at the end of May when they were fetching just 55 cents.
Nevertheless, Adams appears to still see value in them at the current level judging by this purchase.
One broker that might agree is Bell Potter. It currently has a speculative buy rating and a $1.12 price target on the uranium share.
