A company's own top management tend to have the best inside view into the business, so when company officers make major buys, investors are wise to take notice. Presumably the only reason an insider would take their hard-earned cash and use it to buy stock of their company in the open market, is that they expect to make money — maybe they find the stock very undervalued, or maybe they see exciting progress within the company, or maybe both. So in this series we look at the largest insider buys by the ''top brass'' over the trailing six month period, one of which was a total of $10M invested across 2 purchases by John C. Textor, Chief Executive Officer at Digital Domain Media Group Inc. (NYSE: DDMG).
Click here to find out which other top insider buys by the ''top brass'' you need to know about »
Textor bets big on DDMG:
| Purchased | Insider | Title | Shares | Price/Share | Value |
|---|---|---|---|---|---|
| 11/18/2011 | John C. Textor | Chief Executive Officer | 1,176,471 | $8.50 | $10,000,003.50 |
| 11/21/2011 | John C. Textor | Chief Executive Officer | 7,750 | $6.35 | $49,212.50 |
Textor's average cost works out to $8.49/share. In trading on Tuesday, bargain hunters could buy shares of Digital Domain Media Group Inc. (NYSE: DDMG) and achieve a cost basis lower than Textor, with shares changing hands as low as $5.56 per share. Shares of Digital Domain Media Group Inc. were changing hands at $5.74 at last check, trading up about 3.6% on Tuesday. The chart below shows the one year performance of DDMG shares, versus its 200 day moving average:
Looking at the chart above, DDMG's low point in its 52 week range is $5.38 per share, with $8.60 as the 52 week high point — that compares with a last trade of $5.74.
DDMG operates in the Entertainment sector, among companies like Ballantyne Strong, Inc. (AMEX: BTN) which is down about 0.3% today, and LodgeNet Interactive Corp (NASD: LNET) trading higher by about 3.9%. Below is a three month price history chart comparing the stock performance of DDMG, versus BTN and LNET.
