Robert Deutschman, a director at Digital Turbine (APPS), recently bought 20,000 shares. The buy increased his holdings by 3 percent, and came to a total cost of $136,800. He was joined by another director who bought 5,000 shares, paying $34,250 to do so.
Over the past two years, company directors have made over a dozen buys. The company’s CEO has been a slight seller of shares, with some of those sales coming from the exercise of stock options.
Overall, company insiders own about 4 percent of shares.
The mobile app development platform has lost about 60 percent of its value over the past year. Revenues have dropped 22 percent, and the company is not yet earning a profit.
However, that drop has pushed shares under a $1 billion valuation. And the stock now goes for an estimated 9 times forward earnings. An improvement to profitability could lead to soaring shares in the months and years ahead.
Action to take: Investors may want to consider building a stake here. Shares are oversold at current prices, and the last time shares traded this low they quickly soared to $80. At the moment, the stock does not pay a dividend.
For traders, the January 2024 $7.50 calls, last going for about $0.70, could see high-double-digit gains or better on a rebound in shares in the coming months.
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 of the companies mentioned in this article.