A Zynga Board Member BOUGHT $560,000 Worth Of Zynga Stock Last Week
Ellen Siminoff, a longtime Internet executive who joined the board of Zynga this summer, bought 250,000 shares at $2.22 a share last week.
The stock is now trading around $2.14, so Siminoff is already out money, as the stock continues to decline.
But as DividendChannel.com's editors put it, "There’s an old saying on Wall Street about insider buying: there are many possible reasons to sell a stock, but only one reason to buy." And that's that she expects to make money in the long run.
Siminoff's purchase was planned in advance as part of her 10b5-1 trading plan, a measure directors and executives of companies normally take to comply with SEC regulations around insider trading.
Siminoff also received 50,036 restricted stock units which will all vest in July 2013. She has not sold any shares since becoming a director.
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