14 DAY TRIAL // While some Twitter leaders may be selling their stock left and right, Jack Dorsey just spent $9.5 million on Twitter shares.
This is not the first time Dorsey has put his money back into the company by buying more stock, with the most recent such move taking place in February. Back then, he spent $7 million on shares.
Following the Friday purchase, Dorsey took to Twitter to share the news, which translated into a one percent gain in the company's share price in after-hours trading, which put the TWTR at $16.69. That's not a very big gain, but it's an important one, nonetheless.
According to the SEC filing, Dorsey bought 574,002 shares at about $16.62. Taking into consideration that Twitter stock used to sell for almost $70, this may be a very good deal. On the other hand, just a few days ago, Twitter's shares were down about $2 compared to Friday's quotation. The increase can be "blamed" on the company's most recent quarterly report where it was revealed that during the first three months of 2017 Twitter's revenue reached $548 million, way over Wall Street's expectations.
Regardless of which way you look at things, Dorsey is clearly betting on Twitter's future.
Twitter's CEO has now purchased over 1 million additional shares this year alone. It seems, however, that he's been selling his Square stock, so that's probably where the money comes from.
Another cofounder is selling off stock
In contrast, Ev Williams, Twitter co-founder, announced earlier this month that he was going to sell up to 30% of his stock due to personal reasons, namely investing in some other projects he's passionate about.
Williams is going to sell the stock in multiple packs, at predetermined dates, so there aren't any concerns over insider trading. Williams is to keep his position on Twitter's board and will remain with the company.