Why Infinera Corp. Shares Surged Higher Today
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 Corp. jumped 12% Monday after a company executive purchased a significant number of shares.
So what: Specifically, an SEC filing Friday revealed Infinera CFO Brad Feller just spent over $206,000 to buy 25,000 shares at an average price of almost $8.25 per share.
Now what: As of yesterday's close, shares of Infinera had gradually drifted more than 12% lower since the company posted better-than-expected first quarter results last month. And that underperformance came despite at least one significant analyst upgrade since then. Feller's move, then, is viewed as a big vote of confidence and further negates concerns surrounding Infinera's previous slower-than-expected growth. To be sure, if Infinera can maintain its momentum and keep moving in the right direction, shares might well be able to continue rewarding patient investors from here.
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The article Why Infinera Corp. Shares Surged Higher Today originally appeared on Fool.com.Steve Symington owns shares of Apple. The Motley Fool recommends and owns shares of Apple and Infinera. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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.
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