John Keane, a director at
IronNet (IRNT), recently picked up 25,000 more shares. The buy increased his stake by nearly 6.5 percent, and came to a total price of $106,000 exactly.
This marks the first insider buy at the company since it went public last year. The company Co-CEO, President & Chairman, who is also a major holder of shares, has made some small reduction in his shares since then.
Overall, insiders own 35.1 percent of the company.
Those insiders have been sitting through a big drawdown, as shares of the cybersecurity firm are down nearly 60 percent since they went public last year. As with many early-stage companies going public recently, the company is not yet profitable and operating at a steep loss, although that can likely improve in time.
Action to take: Like many other companies that recently went public, shares have been heavily sold since their IPO. The stock looks oversold in the short-term, and can likely move higher in the months ahead. Investors might like shares as a rebound play, although they won’t get a dividend with this company.
For traders, the May $5.00 calls, last going for about $0.70, look like a reasonable way to play a rebound in shares in the next few months. With the stock around $4, it would take a 20 percent move higher for the option to move in-the-money, but traders could nab high-double or even low-triple-digit profits.
Disclosure: The author of this article has no position in the company mentioned here, but intends to trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.
