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What: Shares of Digital River (UNKNOWN:DRIV.DL) have popped today by as much as 13% after numerous insiders reported buying shares.
So what: Most notably, CEO David Dobson acquired 30,000 shares between the prices of $14.75 and $14.95, bringing his total direct holdings to nearly 420,000 shares. Director Thomas Madison also increased his stake by approximately 9,000 shares through various trusts, some of which are held for the benefit of Madison's grandchildren. General counsel Kevin Crudden and CFO Stefan Schulz each also acquired 1,000 shares.
Now what: Dobson's investment translates into a $450,000 vote of confidence in Digital River's future, and his stake was valued at $6.3 million as of Friday's close before today's pop. This was an open market purchase, which is more meaningful than insiders cashing in share-based compensation through options exercises. This is personal money that Dobson is putting on the line, and the purchase is giving investors reason to be optimistic.
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