Boston, MA 08/18/2014 (wallstreetpr) –A Senior Vice President and an Independent Director of the photonic integrated circuit maker NeoPhonics Corp (NYSE:NPTN) have resorted to buying their company shares on August 13 and 14. They seemed to have entered the scenario after the stock had hit a low of $2.20 on August 12. Their action also comes after the company reported a smaller loss for the second quarter than the year-ago quarter a week ago.
Management Persons Buy Shares
NeoPhotonics Corp (NYSE:NPTN)’s Independent Director, Charles Abbe, had purchased a total of 40K shares in two transactions. While he had acquired 20,398 shares on August 13 at an average cost of $2.636 for a total consideration of $53,730, another 19,617 shares were purchased by him the next day at an average price of $2.74 for a total amount of $53809. In all, the independent director had spent about $107.6K in acquiring 40K shares of the company.
Similarly, NeoPhotonics Corp (NYSE:NPTN)’s Senior Vice President for global sales and product management, Benjamin Sitler, had acquired 10K shares on August 13 at an average price of $2.72 for a total consideration of $27,198. Following this transaction, his holding in the company had increased to 66,482 shares.
Comparison of Buying Price
The stock had hit a low of $2.20 on August 12 and a high of $8.50 earlier. The purchase of shares was made between $2.64 and $2.74 in the two-day period. This meant that both the independent director and senior vice president had paid 44 – 54 cents more than the yearly low price of $2.20 representing 20% – 24.6% more.
However, looking at the yearly-high price of $8.50, both of them have acquired the shares at a discount of 67.8 – 68.9%. Though the share price slackened a bit in the next day’s regular trading session, the insiders’ purchase of shares should have sent a signal to investors that better times can be seen in the near future erasing the past where it failed to meet expectations. Their action would have certainly arrested a further fall in the stock price.
