Yahoo! president Sue Decker has paid in the region of 1.1 million pounds for 47,000 of the search engine provider's shares.Her share-buying began a day after the company's stock hit a three-year low at $22.44.
Ms Decker's spending was revealed in a filing with the US Securities and Exchange Commission and is seen by many as a sign of her confidence in Yahoo!'s future.
Imran Khan, an analyst from JP Morgan, commented in a research note: "Usually, the buying and selling of stock by management is part of the normal landscape of business.
"However, we believe that this isolated incidence is evidence of increasing management confidence in company performance."
The move is in accordance with JP Morgan's belief that the search engine "has positioned itself for recovery in both the search and the display advertising markets", he added.
In June of this year, Jerry Yang replaced Terry Semel as Yahoo!'s chief executive officer.
Ms Decker, who previously headed the company's advertiser and publisher group as executive vice president, was moved to the position of president during the same management reshuffle.
Last month, Yahoo! also announced the appointment of its first female director, Maggie Wilderotter.
The move saw the company's first female director in its 12-year history as she joined the ten existing male members of the board.
