On Thursday I had a quick look at a few shares which had experienced significant insider buying this month. Insider buying is generally seen as a bullish signal by many investors as few would know how a company is performing better than a director.
For the same reason, when directors are shown to be selling shares it is often interpreted as a bearish signal.
With that in mind, here are three companies which have experienced insider selling this week:
NIB Holdings Limited (ASX: NHF)
According to a change of director's interest notice this afternoon, nib's managing director, Mr Mark Fitzgibbon, has offloaded 70,000 nib shares on market this week for a total of $475,371.56. The company has advised that the sale was made to "meet a personal income tax obligation resulting from past awards of remuneration for his role in the form of nib shares." Mr Fitzgibbon still has a significant holding in the company despite this sale.
Netcomm Wireless Ltd (ASX: NTC)
Founder and strategic adviser David Stewart has sold 340,000 shares on market this week according to a notice released today. Mr Stewart retired as the broadband technology company's CEO at the end of 2016 but remains close to the company. I wouldn't be too concerned with this share sale, Mr Stewart still has a holding of 21 million shares.
Ramsay Health Care Limited (ASX: RHC)
According to a notice filed with the ASX today, non-executive director Rod H McGeoch has sold 4,500 shares for a total of $283,500. This sale reduces Mr McGeoch's holding by approximately 7.5% to 54,975 shares. No reason was given for the share sale. Considering its weak performance of late, this doesn't fill me with a lot of confidence. But I wouldn't be too alarmed unless fellow directors started to sell shares as well.
