What happened
Shares of WeWork (WE +0.00%), a real estate company focusing on shared working environments, were climbing today after the company reported in a Security Exchange Commission (SEC) filing that its CEO, Sandeep Mathrani, bought 30,000 shares of WeWork.
The company's stock soared by more than 16% during trading today and was up by 10.1% as of 2:06 p.m. ET.
So what
WeWork filed a Form 4 with the SEC showing that Mathrani purchased 30,000 shares of WeWork at an average price of $6.55. Investors like to see a company's management financially invested in the company, so it's not that surprising to see WeWork's stock jump on this news.
Image source: Getty Images.
But in general, investors haven't been particularly fond of WeWork as of late. The company's share price is down 12% over the past three months and has fallen 28% since it went public through a special-purpose acquisition company (SPAC) merger back in October.
In the company's most recent financial results, reported on March 11, revenue for the full-year 2021 was down 24% compared to 2020 and fell nearly 26% from 2019.
The company's losses are also moving in the wrong direction. WeWork reported a yearly loss of $4.4 billion for 2021, which was worse than the loss of $3.1 billion for 2020 and $3.2 billion in 2019.
OTC: WE
Key Data Points
Now what
While it's good to see that WeWork's CEO is investing in his own company, investors may want to be careful about getting too excited about the company's share-price move today.
The company's sales and earnings are moving in the wrong direction on an annual basis, which means there's still lots of work ahead for management to turn the company around.
