Why Digital River Shares Popped

Before you go, we thought you'd like these...
Before you go close icon

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Digital River have popped today by as much as 13% after numerous insiders reported buying shares.

So what: Most notably, CEO David Dobson acquired 30,000 shares between the prices of $14.75 and $14.95, bringing his total direct holdings to nearly 420,000 shares. Director Thomas Madison also increased his stake by approximately 9,000 shares through various trusts, some of which are held for the benefit of Madison's grandchildren. General counsel Kevin Crudden and CFO Stefan Schulz each also acquired 1,000 shares.


Now what: Dobson's investment translates into a $450,000 vote of confidence in Digital River's future, and his stake was valued at $6.3 million as of Friday's close before today's pop. This was an open market purchase, which is more meaningful than insiders cashing in share-based compensation through options exercises. This is personal money that Dobson is putting on the line, and the purchase is giving investors reason to be optimistic.

Interested in more info on Digital River? Add it to your watchlist by clicking here.

It's incredible to think just how much of our digital and technological lives are almost entirely shaped and molded by just a handful of companies. Find out "Who Will Win the War Between the 5 Biggest Tech Stocks?" in The Motley Fool's latest free report, which details the knock-down, drag-out battle being waged by the five kings of tech. Click here to keep reading.

The article Why Digital River Shares Popped originally appeared on Fool.com.

Fool contributor Evan Niu, CFA, has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners