Ebix Shares Jumped: What You Need to Know
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 e-commerce specialist Ebix (NAS: EBIX) bounced as high as 10.6% this morning on dramatically heavy volume.
So what: An SEC filing posted last night showed Neil Eckert making a $495,000 open-market investment in Ebix shares, boosting his holdings by a meaty 28%. Eckert is an Ebix director as well as chairman of the nominating and corporate governance committees, and when a dude with that much insight into the company's workings makes this big a real-money bet, it's a respectable sign that shares may be undervalued.
Now what: Another director and controversial CEO Robin Raina also bought some shares on the open market recently, but their transactions hardly made a difference to their stakes in Ebix. This purchase is a much bigger move. Ebix investors took it on the chin in March when Seeking Alpha contributors called Raina a fraud, but shares have bounced back more than 40% from the lows this purported scandal brought on. We Fools generally think Raina is a standup corporate citizen, and that Ebix deserves a better reputation. Why else would we feature the stock in two different newsletter services and another real-money holding?
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At the time this article was published Fool contributor Anders Bylund holds no position in any of the companies mentioned. The Motley Fool owns shares of Ebix. Motley Fool newsletter services have recommended buying shares of Ebix. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinion, but we all believe that considering a diverse range of insights makes us better investors. Check out Anders' holdings and bio, or follow him on Twitter and Google+. We have a disclosure policy.