Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of VeriFone Systems (NYSE: PAY ) popped today by as much as 12% after the company landed a big contract and its CEO made an insider purchase.
So what: The credit card terminal maker scored a deal to install payment systems in roughly 6,500 taxis in Washington, D.C., worth upwards of $35 million. The contract spans five years, and VeriFone will also provide trip reporting and bolster its media presence in the vehicles. It could also see additional advertising revenue from the deal that could bring its total value up to $45 million. CEO Douglas Bergeron also filed a Form 4 disclosing that he made an outright purchase of shares last week of 155,000 shares.
Now what: The average purchase price was approximately $32.50, bringing his total cost up to just over $5 million in a vote of confidence in the company. The insider purchase is probably more important here, as a $35 million contract over five years doesn't seem too exciting alone when you look at the $472 million in revenue the company brought in last quarter alone. Bergeron's purchase was a substantial increase in his total holdings.
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