Mellanox's share price rose 14% on Friday, the day after Dov Baharav bought $2 million worth of shares.
The share price of Mellanox Technologies Ltd. (Nasdaq:MLNX) jumped 14% on Friday to $40.30, giving a market cap of $1.75 billion, in heavy trading. In the absence of any announcement from the company, the jump in share price and turnover may be attributable to a notice from the company on Thursday that director Dov Barahav bought 57,739 Mellanox shares at $34.60 per share for nearly $2 million. This purchase was apparently viewed favorably by investors, who sent the share price soaring in a turnover that was 120% above the average daily turnover.
Barahav, a former CEO of Amdocs Ltd. (NYSE: DOX), resigned as chairman of Israel Aerospace Industries Ltd. (IAI) (TASE: ARSP.B1) earlier this year. His successor at IAI, Rafi Maor, took up the post today. This was not Baharav's first transaction in Mellanox shares, but it was the largest.
Published by Globes [online], Israel business news - www.globes-online.com - on November 17, 2013
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