Why Shares of WeWork Are Up Today

Shares of WeWork (NYSE: WE) had gained 11.5% as of 11:15 a.m. ET for no obvious reason, although there appear to be several reasons driving the move.

This morning, WeWork disclosed in a regulatory filing that CEO Sandeep Mathrani purchased 29,600 shares of the company on Friday at a price of $8.45 per share. Insider buying, particularly from the CEO, tells the market that management is bullish on the company and thinks shares are undervalued.

Additionally, on Friday, the market-research company Hedgeye added WeWork as a new best long-buying opportunity. Hedgeye analyst Rob Simone said that WeWork's earnings before interest, taxes, depreciation, amortization, and restructuring (EBITDAR) could more than double on a year-over-year basis in 2022, which would also likely result in a doubling of the stock price.

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Source Fool.com