Why 2U Stock Soared Today
Shares of 2U (NASDAQ: TWOU) popped as much as 20% early Tuesday, according to data provided by S&P Global Market Intelligence, then settled to trade up around 15% as of 3 p.m. ET following an insider share purchase from the company's recently appointed chief product officer.
According to an SEC filing late Monday, 2U CPO Aaron McCullough acquired 45,700 shares of the online education platform company on Aug. 17 at an average price of $3.14 per share. The purchase increased McCullough's position in it by 15% to 348,524 shares -- a stake worth roughly $1.16 million as of this writing, or a little more than 0.4% of 2U's total shares outstanding. McCullough was appointed to the CPO position in mid-June.
Many investors view such insider purchases as an encouraging sign that executives believe their company's stock is undervalued.
Source Fool.com
