Why Infinera Shares Popped
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 Infinera have popped by as much as 12% today after an insider purchased shares.
So what: CEO Thomas Fallon filed an SEC Form 4 late Friday after market close, disclosing several purchase transactions from last week in a vote of confidence in the company's prospects. Last week, Fallon exercised employee stock options to purchase 100,000 shares at $2 per share. These options didn't expire until 2016 so Fallon exercised well before he had to.
Now what: Even more bullish is the fact that Fallon also made an additional open market purchase of 50,000 shares at prices ranging from $4.44 to $4.60. After everything was said and done, Fallon's open market trade totaled a little over $220,000 invested, in addition to the option exercise and his existing holdings. Among all his various trusts, he beneficially owns nearly 850,000 shares, so the purchase last week was a notable addition to his stake in the company.
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The article Why Infinera Shares Popped originally appeared on Fool.com.Fool contributor Evan Niu, CFA, has no positions in the stocks mentioned above. The Motley Fool owns shares of Infinera. Motley Fool newsletter services recommend Infinera . 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.