GOCO.L Share News (GOCO)

(Sharecast News) - Comparison website GoCompare rallied on Tuesday after chairman Peter Wood - the founder of Direct Line, Esure and Sheila's Wheels - snapped up nearly 17.8m shares in the company, lifting his total holding to 29.9% from 25.6%.Wood said: "My share purchase underlines my view, which is shared by my fellow board members, that the current GoCompare share price does not fully reflect the operational and strategic momentum in the business."I'm particularly excited about our weflip brand and the potential opportunities it offers. If we deliver on our wider Savings as a Service strategy it will be brilliant for savers everywhere, reinforcing my decision to increase my holding to 29.9%."In its preliminary full-year results last week, the company said it plans to invest around £10m in marketing for its energy switching service, weflip. This will be funded by operational cash flow from the core business.Russ Mould, investment director at AJ Bell, said: "British entrepreneur Peter Wood is a man to watch when it comes to all things insurance. So when he declares that GoCompare is far too cheap and buys another big slug of the business, you know both industry professionals and investors are going to sit up and take notice."Mould noted that the shares have been weak for some time for a number of reasons."First there were rumours that Amazon was thinking about entering the market, causing investors to panic about the implications this would have on GoCompare's earnings. Then falling motor premiums weakened the insurance market and GoCompare's revenue growth ground to a halt."GoCompare is now betting on a new service called weflip to be a significant earnings driver in the future. This is a fully automated energy switching service."The fact that Wood has taken his stake to the highest possible level before having to make a full takeover offer, under listing rules, would suggest he is extremely bullish about GoCompare's prospects. The next question will be whether he wants to take the business private so it can concentrate on the day job without the distractions of being a public company. One cannot rule it out."At 1030 GMT, the shares were up 7% to 69.10p.