Yesterday afternoon, Uber board director Robert Eckert disclosed a large open market purchase of Uber stock during Monday's trading session.
The stock purchase totaled to roughly half a million dollars at an average price of $31.60 (or about 5% below where it closed on Wednesday).
Insider purchases like this are often a great indicator of internal / management confidence.
Executives and board directors obviously have great purview into how things are going at their respective companies - so when they make large personal purchases with their own capital, it's often wise for other investors to pay attention.
This transaction in particular stood out to us given the insider's consumer sector expertise and relative lack of other open market purchases.
Mr. Eckert is currently a private equity executive and formerly the CEO of both Kraft Foods and Mattel.
Eckert currently also holds directorships at McDonald's (MCD), Levi Strauss (LEVI), and Amgen (AMGN), but notably has not made any open market purchases at any of those companies in the last several years.
While not much can be read into that absence of buying activity alone, when held in context with this recent open market purchase, we believe it improves the relative signal that the transaction sends.
As always, we'll be sure to keep you posted if any other interesting insider buying activity comes across our screens.