NEW YORK (TheStreet) -- When SINA Corp. (SINA) announced on Monday that it had signed an agreement to sell as many as 11 million newly issued shares to its CEO Charles Chao, the stock jumped 23% in response. SINA shares are on the rise for a third day as a result, higher by 5.89% to $53.59 on heavy volume in early afternoon trading on Wednesday.
This is the second time that the Chinese Internet portal's CEO is putting a large amount of his own money into the company, The Wall Street Journal reports, adding that Chao's previous investment was quite successful.
The shares will be priced at $41.49 each for a total value of $456 million.
During the 2009 slump in the economy SINA was dealing with a cyclical downturn, The Journal said, noting that in November of that year Chao and other SINA managers put almost $50 million into the company. It was a move that took some time but eventually paid off.
Separately, TheStreet Ratings team rates SINA CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate SINA CORP (SINA) a HOLD. The primary factors that have impacted our rating are mixed-some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income and reasonable valuation levels. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year."