NEW YORK (AP) — Shares of Monster.com’s parent company soared Tuesday after the CEO and two other top executives bought shares in the company.
The stock has been under pressure as the company deals with competition from other job-related websites like LinkedIn. Since the beginning of the year, they’ve plummeted from about $24 to $8.16 as of Monday.
But Tuesday, they climbed to $9.91, a gain of more than 21 percent.
The pop came after news that three top executives had added to their holdings in the company. Shareholders tend to like that because it means the executives are aligning their own fortunes with the company’s. It’s also meant to signal that the executives believe the stock will rise. The company has turned a profit for the last three quarters, after four straight quarters of losing money.
Sal Iannuzzi, chairman and CEO since April 2007, bought 50,000 shares at $8.17 each on Tuesday morning, spending more than $400,000. That represented an increase of about 3.5 percent in the number of shares he owns.
Chief Financial Officer James Langrock and Executive Vice President Timothy Yates also added to their holdings on Tuesday.
On Monday, Monster announced that its chief information officer resigned “to pursue another opportunity.”