The head of AOL buys shares of the company

After buying one of the most popular content resources in the US, Huffington Post, AOL shares sank by as much as 7%. Experts associate such a fall with various reasons, however, of course, none of the reasons, and the investigation itself does not suit the company's management. Thus, AOL CEO Tim Armstrong decided to raise the stock quotes of his company on the stock exchange, buying up several hundred thousand of these same stocks. A total of 477,000 shares were bought for a total price of about $ 10 million. Immediately after this, AOL securities rose in price by 4%.

It is worth noting that the purchase of shares of the company by its head is a fairly common step, which usually positively influences the opinion of stockbrokers about the company's prospects in the market. It is clear that the purchase of AOL shares, made by Armstrong, is an indicative step. Currently, AOL is trying to change its development strategy using various methods. As a result, certain fluctuations of AOL stock prices occur on the stock exchange, and not always upwards. Armstrong has already said that with his step he is trying to show his own confidence in the chosen development strategy of the company.
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At the time of purchase of shares, their average price was $ 20.97 per share, which, generally speaking, is a good indicator. At the moment, the CEO of AOl currently has 876,511 shares of his own company, of which 709,157 shares were bought by Armstrong with his own money or through the use of intermediary schemes. Generally speaking, Tim Armstrong has the right to purchase several million shares of AOL - he received such a right after switching from Google.

Despite the fact that the authority of AOL was somewhat undermined by the company's recent failures, plus the sale of some fairly popular services, the company is now taking a number of actions to restore its former popularity. In general, experts believe that the further development of the company is a matter of time, the main thing now is to prevent new unsuccessful steps.

Via wsj