July 02, 2013
The CEO purchased 200 shares @ $7.35
His total share ownership is now 2,600 shares
I realize 200 shares is not much, but considering the CEO only had 2,400 shares up until then, %-wise it seems like a significant move.
Unless it is related to some kind of stock purchase plan that is in place, then there is no significance at all.
Tufto purchases should be ignored. He specified in advance through a plan (see below) that he'd be purchasing shares throughout the year at regular intervals - which has turned out to be 200 shares roughly once a month during the first week.
You may want to ask yourself for what reason the shares rose so much in such a short period of time? Seriously, he purchased 200 shares on June 3 at $5.13 - one month later with no news the shares were 50% higher?
Maybe we should be asking why did the previous CFO "resign"? Sure, people leave jobs all the time for personal reasons. When that happens are you given a full severance package with allowance for outplacement services? Generally, when people leave a job and sign a release in exchange for a severance package it is because they were asked to leave. Going back to his employment agreement, we in fact see that in the paragraph referred to in the 8-K - if you go back to the filings, the implication is clear that he was terminated by ISS and it was not for personal reasons. Calling it a "resignation" is misleading.
Item 8.01 Other Events.
On December 10, 2012, Kris B. Tufto, President, Chief Executive Officer and a Director of Image Sensing Systems, Inc. (the “Company”), established a Rule 10b5-1 trading plan (the “Plan”) with a broker to purchase Company common stock in the open market.
Pursuant to the Plan, Mr. Tufto will purchase shares of common stock at regular intervals in the period from the Plan’s establishment through December 5, 2013
Thank you for researching that.
As I did state at the end of my post, I thought it could have been related to a stock purchase plan, which as you pointed out, is in fact the case.
As for the rise in share price, I think it was speculation, as this rise began shortly after the company came out with a 'poison pill' type of plan to deter a potential takeover. Perhaps some investors viewed this as an indicator that someone demonstrated a 'strong desire' of taking over the company?
That would be my best guess.