Can the company’s shares fully recover the losses made in late August?
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The Dicker Data Ltd (ASX: DDR) share price is rebounding strongly after heavily being sold off late last month. This comes after the company reported that a number of its directors have taken the opportunity to buy some shares.
At the time of writing, the IT Distributor’s shares are up 4.63% to $14.02. This means that over the past two days alone, its shares have gained around 10%.
What happened recently?
Last Friday, Dicker Data chair and CEO, David Dicker made an on-market transaction selling a portion of his shares.
In total, 2.74 million Dicker Data shares were offloaded at a price of $15.40 per share to fund “personal projects”. The sale represented roughly 1.6% of the company’s entire share registry and reduced Mr Dicker’s holdings to around 33.6%.
When news broke out, the company’s shares tanked around 9% as investors were spooked by sudden selling. Although it’s worth noting that Dicker Data shares reached a record high of $16.60 the day earlier after reporting its interim results.
The company noted however that Mr Dicker entered into a lock-up arrangement, preventing him from selling any more shares in 2021.
Who’s buying the shares?
Taking advantage of the Dicker Data share price weakness, a few of the board directors have made a series of purchases.
As such, non-executive director, Leanne Ralph made a direct purchase of 20 shares at a price of $14.35. After the purchase, Ms Ralph currently holds 3,198 Dicker Data shares in her portfolio.
Non-executive director, Fiona Brown acquired 8,465 shares through both direct and indirect interests. The price paid for each of the shares was also executed at $14.35. Ms Brown’s holdings are around 55.7 million Dicker Data shares, making her the second largest shareholder in the company.
Dicker Data executive director and chief financial officer, Mary Stojcevski added 2,900 shares to her portfolio. The direct and indirect purchase was transacted at approximately $12.89 per Dicker Data share.
The following day (1 September), Ms Stojcevski acquired another 1,630 shares at a price of $14.35 each. Her total holdings come to 264,668 Dicker Data shares.
And lastly, Dicker Data executive director and chief operating officer, Vladimir Mitnovetski picked up 17,788 shares at an average price of $12.82 apiece. He has 773,741 Dicker Data shares in total.
Dicker Data share price summary
Over the past 12 months, Dicker Data shares have posted gains of 80%, with year to date around 30% higher.
Based on today’s price, Dicker Data commands a market capitalisation of approximately $2.4 billion, with 172.8 million shares on issue.
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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Dicker Data Limited. The Motley Fool Australia owns shares of and has recommended Dicker Data Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.