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:
Bank of Queensland Limited (ASX: BOQ)
According to a change of director's interest notice, the non-executive independent director and chairman-elect of this regional bank, Patrick Allaway, has been buying shares this week. The notice reveals that Mr Allaway picked up 20,000 shares through on-market trades at an average of $9.62 per share. This equates to a total consideration of $192,400 and lifted his holding to a total of 30,000 shares. It appears as though the bank's next chairman is confident in the direction it is going and sees value in its shares at the current level.
Dicker Data Ltd (ASX: DDR)
A change of director's interest notice reveals that the chief operating officer of this distributor of ICT hardware, software, cloud and IoT solutions has been buying shares on-market again. According to the notice, Vladimir Mitnovetski bought a total of 9,940 shares at an average of just under $5.05 per share on June 11. This worked out to be a total consideration of approximately $50,000. Mr Mitnovetski now owns a total of 638,653 shares. The Dicker Data share price has been on fire this week following the launch of its new Dicker Data Financial Services business.
Praemium Ltd (ASX: PPS)
The CEO of this investment platform provider, Michael Ohanessian, has taken advantage of its sizeable share price decline to top up his position again this week. According to a change of director's interest notice, Mr Ohanessian picked up a further 58,000 shares at an average of 35 cents per share on Wednesday. This was the fourth on-market purchase that the CEO has made in the space of one month, bringing the total shares purchased over the period to 236,000. This increased his holding to a massive ~15.5 million shares. Praemium's shares have fallen significantly this year after announcing the loss of ANZ Private as a customer.
