Could NII Officials Be Buying Stock On Insider Information?
Shares NII Holdings Inc. (NASDAQ:NIHD) surged to their highest in three years on August 6 after Wells Fargo and Co. announced it expects the company's second-quarter results to beat Wall Street estimates.
Although the public was not aware of this information, it appears officials at NII may have known about the better-than-expected earnings, considering $322,700 in insider buys were reported in the three months leading up to the publishing of the results.
According to Bloomberg, Jennifer Fritzsche, an analyst at Wells Fargo, said sales will come in at $1.63 billion, compared to the average estimates of $1.56 billion in revenue. Earnings before interest, taxes, depreciation and amortization are expected to be $310 million, compared with Wall Street's estimate of $295 million.
The company's stock finished 18 percent higher after the prediction was announced, sending shares of the stock to $8.08 each. This marked the biggest one-day gain for the company since 2009, and helped the stock regain territory after it fell 68 percent in 2012 through August 3.
Do you think NII insiders bought shares on insider information?
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