A pretty great way of expressing confidence in your own company is to purchase its stock — even when you already own substantial amounts of it. After all, you are putting a lot of your own money on the line. Twitter CEO Jack Dorsey recently spent around $9.5 million in purchasing Twitter stock today.
This spree of share purchase comes a few months after Dorsey had spent around $7 million in purchasing Twitter stock. The share repurchase caused investors to perk up and Twitter share rose by one percent in after-hours trading.
As per a filing with the Securities and Exchange Commission, Dorsey purchased around 574,002 shares of Twitter stock at $16.62 apiece.
Interestingly, Jack Dorsey has also been selling off his stock in Square, the other company he helms as its CEO. Some of that money has been spent in backing his own foundation.
Dorsey could have gotten the same amount of shares for a lower price had he made the purchase a couple of weeks earlier. As things stand, Twitter had its first over good quarter financially in a pretty long time and Twitter stock has increased in price since then. So, it may not have been a particularly great idea to purchase stock right now.
However, Dorsey could well be making a statement that he expects things to get even better. And sure, if the company’s past performance is anything to judge by, the potential is certainly there. Twitter stock stood at around $70 at its peak. After Dorsey took to Twitter to announce the share purchase, the company’s stock jumped by almost 1 percent in after-hours trading.
