Why You Shouldn't Read Too Much Into Insiders, Including CEO Jack Dorsey, Buying Shares Of Twitter

It was revealed earlier on Monday that the National Football League (NFL) has signed a 2-year deal with Twitter Inc TWTR to bring more pro football highlights on Twitter's feed. Apart from that Twitter's CEO, Jack Dorsey tweeted today an SEC filing revealing that he has purchased 31,627 shares of the company last Friday.

Dorsey is not the only one purchasing Twitter's shares, separate SEC filings have revealed that other Twitter insiders including Board member Peter Currie have been purchasing the company's shares in the last few days.

Mark May, Citigroup analyst, was on CNBC recently to weigh in on these latest developments at Twitter.

Great Deal For Twitter

"Well content is really key to any of these services ongoing success and the NFL obviously is a very popular content to the mass market," May began. "So, I think, the NFL deal is a great deal for Twitter. Clearly Anthony Noto, the CFO's relationships at the NFL, as well as the scale of the Twitter audience is helping that deal come around."

Shares Bought Pales In Comparison To Shares Sold

He continued, "I think, the endorsements from the insiders that are buying stock, not just Dorsey, but Peter Fenton and others is a good sign. But you have to take it into the broader perspective as Dorsey has sold, I think, 400,000 shares of stock, Evan Williams the other co-founder has been selling millions of shares of the stock in the last couple of quarters."

"The amount of stock that these insiders have bought in the recent weeks pales into comparison to the amount they sold in the last few months. And so, I am not reading too much into that, frankly."