Jimmy Duan, Chief Customer Officer at
BlackLine (BL), recently bought 2,000 shares. The buy increased his stake by 4%, and came to a total cost of $95,450. The buy came a week after the company Co-CEO bought 3,000 shares, paying $149,650 for the position.
Those are the only insider buys over the past two years. Otherwise, company executives and directors have been moderate sellers of shares over the past two years. The last insider sales following the exercise of stock options occurred over a year ago.
Overall, BlackLine insiders own 8.1% of shares.
The finance and accounting application software company is down 14% over the past year. That’s in contrast to the 13% increase in revenues BlackLine saw over the same period.
Shares have slid from a 52-week high to a 52-week low in the span of a few weeks, and appear to be nearing oversold levels now. While the company has beaten on its latest earnings report, a plan to raise money in convertible notes has led to the drop.
Action to take: Investors may want to look for signs of a bottom here before buying. After raising capital, BlackLine may be in a better position to expand and even turn to profitability.
For traders, the August $50 calls, last trading for about $2.65, could see mid-double-digit returns on a rebound higher in the coming weeks.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.
