If there were any concerns that Jack Dorsey was planning to leave Twitter (TWTR) , the embattled CEO put them to rest in a single tweet on Tuesday.
With the hashtag "LoveTwitter," Dorsey tweeted out a link to an SEC filing showing he bought about 426,000 shares of Twitter on the open market this week for roughly $7 million. That increases Dorsey's overall stake in Twitter by about 3%; his ownership now stands at a total of about 15.46 million shares, or roughly 2% of the company's outstanding shares. At the company's current share price of $16.77, those shares would be worth about $259 million.
Shares of Twitter were up about 1.5% on Wednesday afternoon after rising more than 5.8% on Monday and Tuesday. The stock plummeted 12.4% last Thursday following the company's less-than-stellar fourth-quarter results.
Dorsey's SEC filing noted that he bought 63,007 shares on Monday for a weighted average price of $15.87, followed by the purchase of 362,991 shares on Tuesday for a weighted average price of $16.52 per share.
It's the first time Dorsey has purchased Twitter stock since August 2015, when he bought about 31,600 shares. It's also the largest share acquisition by a Twitter executive in almost a full year, going back to when CFO Anthony Noto and executive chairman Omid Kordestani together purchased more than 135,000 shares on Feb. 16, 2016.
TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, said on CNBC's "Mad Dash" segment Wednesday that Dorsey's purchase is "a lot of money" and acts as a sign of confidence for a "revenue-challenged company."
It might also be the biggest open market purchase of Twitter shares among insiders and executives in the company's history, said CFRA Research analyst Scott Kessler. Many CEOs are granted stock options that must be exercised by a certain date, but Dorsey's purchase was done voluntarily on the open market.
"You have the most visible, arguably important leader of the company taking his own money and committing it to buy Twitter stock in the open market," Kessler explained. "That says something."
What it likely says is that Dorsey sees value in Twitter shares at a time when by and large many people don't, Kessler noted. Dorsey could be signaling that Twitter shares have more room to run or he could be trying to appeal to investors whose confidence has recently been shaken.
Dorsey's seemingly ringing endorsement of Twitter comes as other top executives have dumped a portion of their shares. A number of Twitter insiders sold as much as $103 million in shares across the months of May, June and July in 2015.