Plus500 Co-Founder Buys £3.3mln Worth of Shares

Fresh on the back of a multi-million buyback announced last week, shares of the retail brokerage company Plus500 are gradually continuing to move higher. The latest positive news item for the stock is a significant purchase on the part of two senior executives at the company.

One of the co-founders, Alon Gonen, spent over £3.3 million on the open market, acquiring over 468,000 shares. With an average price of £7.06 per share, his purchase signifies a strong commitment to the future value of the company.

Granted, the firm’s management has already expressed its views with the announcement of the buyback program and positive earnings in a really tough market in the first half of 2019. Shares of the company are continuously rising ever since the $50 million buybacks announced by the company last week.

The CEO of the Israeli subsidiary of the Group, Yevgeni Shtuckmeyster, also added to his shareholdings with a purchase worth about £50,000 for a total of about 7,000 shares.

After hitting the lowest levels since February 2017 in April, shares of Plus500 are gradually trending higher in a relatively challenging environment for the industry. The company is the worst performer among publicly traded brokers since the start of the year, with the stock hitting as low as £4 per share in April.

The firm’s stock suffered materially in the aftermath of a report from The Times in February, which alleged an accounting error on the part of the London-listed broker. The first quarter of the year didn’t provide much relief, as traders were less keen on trading in a low Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad Read this Term environment.

That said, since the start of the second quarter and a subsequent increase in volatility in stocks and the value of the British pound and gold, the company marked a material improvement in its performance when compared to Q1 of this year. The earnings report last week triggered a fresh round of buying, with the stock currently trading at £7.22 per share.