CEO bought 50K shares.
EDIT:
NEW YORK (Dow Jones)--Shares of Wind River Systems Inc. (WIND) soared nearly 17% to a fresh 52-week high Monday following disclosure of the chairman and chief executive's added stake in the company.
Wind River's stock rose a new high of $11.66, topping the prior mark of $10.38, set Feb. 23.
Late Friday, it was disclosed that Chairman and Chief Executive Kenneth Klein bought 50,000 shares of Wind River's stock at $10.09. The stock closed at $9.98 on Friday.
The insider buying is the most likely catalyst for Monday's stock movement, according to Garo Toomajanian, an analyst with RBC Capital Markets.
Wind River has seen pockets of insider buying activity since last summer, Toomajanian said. Each time, it has helped the stock.
On July 11, it was disclosed a director bought 100,000 shares of Wind River, sending the stock up more than 8% the following day. The director disclosed the following trading day he had purchased 10,000 more shares.
Disclosures of directors purchasing 95,000-share, 20,000-share and 45,000-share blocks of Wind River between Dec. 11 and Dec. 12 sent shares rising nearly 19% over the two days.
In addition, Toomajanian said activity in the stock has picked up over the last few months. Chief Executive Klein, who took over in January, and his push to get into more Linux software-related businesses, has helped drive the positive sentiment.
The analyst doesn't own shares in Wind River.
A spokesman for Wind River wasn't immediately available for comment. The Alameda, Calif., company provides consulting services for advanced software operating systems.
The stock recently traded at $11.42, up $1.44, or 14.3%, on volume of 1.7 million shares. Average daily volume is 627,934 shares. |
