Auris Medical Holding AG (NASDAQ: EARS) is flying early on in the trading session this morning. However, if you’re looking for a press release, you’re not going to find one. Today’s gains are all about a SEC filing disclosing beneficial ownership held by an insider. Of course, the news excited investors, sending the stock screaming for the top. Today, we’ll talk about the news, what we’re seeing from EARS, and what we’ll be watching for with regard to the stock ahead.
EARS Gains On CEO Purchase
As mentioned above, Auris Medical Holding is having a great start to the trading session this morning after an SEC filiing was released. In the filing, investors learned that Thomas Meyer, CEO and Chairman of the company, purchase 5,128,215 shares of common stock as well as 350,000 common shares upon the exercise of warrants.
In the filing, Meyer disclosed that the purchase of EARS shares was funded through personal funds. The purchase price came to a total of $1,897,439.55, before fees and expenses. As a result of the purchase, Meyer now holds 27.1% of the company.
This is overwhelmingly positive news as the purchaser was the CEO of the company. After all, this transaction further aligns the interests of investors and the CEO alike. So, it’s not surprising to see the excitement among investors following the news.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news leads to moves. In the case of Auris Medical, the news proved to be overwhelmingly positive. After all, the purchase of shares will help to fund the company. At the same time, the transaction further aligns the CEOs interest with that of investors. So, it comes as no surprise that excited investors are pushing the stock on a run for the top. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:11), EARS is trading at $0.74 per share after a gain of $0.14 per share or 22.54% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on EARS. In particular, we’re interested in following the company’s continued work to bring its product candidates to market as well as the continued alignment of the CEOs and investor interests. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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