People don’t often bet millions of dollars without some very strong reason to believe that bet will payoff.
In the case of a recent $25 million ‘wager’, I’m thinking that the man who did it has a pretty good idea about the future of the company he just bet on.
That’s because he happens to be the president and chief executive officer of it…
Dating back to late February, Sprint CEO Marcelo Claure purchased over 5 million shares in his company for at an average of $4.92 each—that’s worth $25.1 million!
And he’s actually not the only one doing it…
Chief Financial Officer Joseph Euteneuer also bought shares, but his March transaction totaled a value of over $100,000.
When asked about the heavy investment by the CEO, a Sprint spokesman for Claure said what you would expect: that the transaction reflects the CEO’s confidence in the company going forward.
But is that all it was?
When these types of deals happen, it’s normally not the result of some vague positive feeling…especially for a stock that’s down 41% from a year ago.
So does Claure know some piece of privileged information that nobody else does? Is he just waiting for the news of some new product or report to be released? Or is he simply trying to take advantage of the stock’s price?
What we don’t and can’t know right now is why Claure made this move.
However, we may not need to…
The fact that the president and CEO of the company bought $25 million worth of stock gave us the alert we needed to start checking in to this situation, and now we can dig a bit deeper.
Sprint’s yearlong fall appears to have ended back in December, and has since then risen from below $4 to above $5. Now the stock is poised to climb up over its longer-term moving average of 150 days, which is just the average price of the stock over that time period.
If that happens, it could be game on and a great bet for Claure. But we’ll have to sit tight and let the stock show us when to get in on it.
When that happens, Midas Premium subscribers will be the first to know.
