AOL, Inc. (AOL): $2 Million Insider Buy Worth Considering

Insider buying remained somewhat constant last week with 158 companies reporting purchase records.

Of the companies on the list, AOL, Inc. (NYSE:AOL) is one worth consideration as the internet service/information provider satisfies a number of iStock's insider buying characteristics.

Bottom Fishing More than one buyer Large Purchase

AOL is a global Web services company with a range of brands and offerings, and a global audience. The Company's business spans online content, products and services, which it offers to consumers, publishers and advertisers. It generates advertising revenues from AOL Properties through the sale of display advertising and search and contextual advertising. It offers a range of display advertising, including text and banner advertising, mobile, video and rich media advertising, sponsorship of content offerings, and local and classified advertising.

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Bottom Fishing:

AOL's stock price got punished for earnings that disappointed Wall Street. Shares closed at $43.90 prior to reporting EPS and $34.85 the following day; a steep drop that put AOL within whisper distance of the 52-week low of $32.19.

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More than one Buyer:

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Although the size disparity hardly could be larger, Director Eve Burton and Chairman and Chief Executive Officer Timothy M. Armstrong both saw value post-EPS and bought AOL shares.

Large Purchase:

Armstrong, who has an annual salary of $3.18 million, purchased 55,600 AOL shares at $36.08 for a total investment of $2,006,048. Two million bucks, not matter how much you make, is a statement of confidence from the CEO. This is head-honcho's first open market buy. His previous activity was limited to acquiring AOL at no cost i.e. exercising options.

Burton purchased 700 shares at $36.95 for an investment of $25,865.

Studies have shown that executives and directors outperform "professional" money managers because they know the intrinsic value of the underlying company. Timothy M. Armstrong provided $2 million reasons why he thinks $36.08 is the place to buy.