Shares of Glu Mobile Inc. (NASDAQ:GLUU) jumped as much as 11.4% early Monday, and traded up 7% as of 1 p.m. EST, after two of the free-to-play game company's executives purchased a significant number of shares.
More specifically, according to SEC filings this morning, CEO Nicholas Earl last Thursday purchased 100,000 shares of Glu Mobile common stock for roughly $2.09 per share, bringing his current position in Glu Mobile to 184,638 shares.
In addition, on the same day, Niccolo de Masi, Glu Mobile's executive chairman, purchased 20,000 shares of Glu Mobile common stock, bringing his current position to 675,936 shares.
For perspective, Glu Mobile announced Earl's promotion to CEO just three weeks ago from his previous position as president of global studios. Earl succeeded de Masi, who transitioned from his prior role as chairman and CEO in favor of the newly created executive chairman position. The announcement states de Masi "will shift his focus toward enhancing the company's long-term growth plan, including strategic acquisition planning and maximizing celebrity relationships, while also facilitating Glu's leadership transition to drive the company forward in a changing mobile games market."
Of course, it also helps that shares of Glu Mobile hit their lowest level since late 2011 after the company released painful third-quarter 2016 results earlier this month. Gross bookings plunged 20% year over year, to $51.3 million, and Glu Mobile expects the metric to decline further sequentially in the current quarter, to a range of $46 million to $48 million.
But these large stock purchases are undeniable votes of confidence in Glu Mobile's future. So while I'm content continuing to watch the game developer's progress from the sidelines, it's hard to criticize Glu mobile investors for bidding shares up today.