Plus500 is enjoying a period of relative positive growth for its shares. The retail brokerage firm’s shares have been spurred by a combination of positivity around the brand and investment by some key players.
Last week, it was announced that Plus500 would be subject to a $50 million dollar buyback. The announcement directly led to the firm’s shares growing in value as investors saw an opportunity in the business.
Another round of positive news pushed the value of Plus500’s shares up. Two of the company’s executives have put their money where their mouth is and purchased shares on the open market.
Executives show commitment and confidence in Plus500
Alan Gonen, co-founder of the brokerage, purchased 468,000 shares worth a combined £3.3 million. The average price for the shares bought by Gonen is £7.06 per share.
Yevgeni Shtuckmeyster, CEO of Plus500’s Israeli subsidiary, also bought the shares from the brokerage. Shtuckmeyster purchased a total of 7,000 shares worth about £50,000.
These purchases by the firm’s top executive have created positivity around the brand. The two executives have shows confidence in the brokerage and its future by pouring their funds into stocks.
They have also shown commitment to the firm and a determination to play a part in its future. The investments made by Gonen and Shtuckmeyster will encourage other investors to buy stock through Plus500.
Brokerage making a comeback
Plus500 is staging a comeback after bad publicity and a slow market affected the firm’s share value. In February, The Times reported that there had been an accounting error by the broker and this affected the firm’s stock significantly.
If you are dealing with people’s money and investments, they need to have complete confidence in your ability to handle the funds well. News that a brokerage firm has accounting problems will have some dire consequences and Plus500 felt those consequences.
The general state of the trading markets also affected the stock value of Plus500. Low volatility discouraged traders from engaging with the markets and the brokerage firm was no exception. Low trade volumes meant that there was little relief for the firm.
After this recent spate of positive news, the firm’s stock has started regaining its value on the market. Trades are also starting to pick up as volatility in stocks has increased over the last few weeks.
Brexit fears have increased the British pound’s volatility and markets have seen increased activity around the currency. The value of gold is also showing signs of volatility and Plus500 has benefited from these factors.
In comparison to the first quarter of the year, there is a positive growth in the brokerage’s earnings. The earnings report released last week generated traders’ interest in Plus500 stock and the stock is being purchased at a quick rate. The stock is currently selling around £7.22 per share.