The9 Limited (ADR) (NASDAQ: NCTY) is having an incredibly strong start to the trading session this morning, and for good reason. The comapny announced that its Chairman and CEO has entered into a share purchase plan to purchase shares of the company. Today, we’ll talk about:
- The share purchase plan;
- what we’re seeing from NCTY stock; and
- what we’ll be watching for ahead.
NCTY Climbs On CEO Share Purchase Plan
As mentioned above, The9 Limited is having an incredibly strong start to the trading session this morning after the company announced a share purchase plan entered into by its CEO. In a press release issued early this morning, the company said that Chairman and CEO, Jun Zhu has entered into a share purchase plan to purchase the company’s American depositary shares (ADSs) from the open market in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934.
In the release, NCTY said that Mr. Jun Zhu is planning on purchasing $3 million worth of the company’s shares in this share purchase plan. Of course, this is exciting for investors. After all, any time a CEO purchases a large chunk of shares, it shows that his/her interests are aligned well with those of investors.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news leads to moves. In the case of NCTY, the news proved to be overwhelmingly positive. After all, as mentioned above, when management purchases large amounts of shares, it shows that their interests are aligned well with investors. So, it comes as no surprise that excited investors are sending the stock screaming for the top. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:33), NCTY is trading at $1.59 per share after a gain of $0.51 per share or 47.22% 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 NCTY. In particular, we’re interested in following the story surrounding the company’s continued work in the blockchain space. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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