Insider Trading Report: SmartRent (SMRT)

Bruce Strhom, a director at SmartRent (SMRT), recently picked up 10,000 shares. The buy increased his holdings by 50 percent, and came to a total purchase price of $110,000.

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  • This is the director’s third buy in the past three months. The prior two buys were also for 10,000 shares each, albeit at slightly higher prices. These three buys mark the only insider activity since the company went public earlier in the year.

    Overall, insiders at the company own over 41 percent of outstanding shares.

    The company is an early-stage technology company blending smart home technology for the rental market. Revenues have been growing at double-digits, but SmartRent has been operating at a loss at present.

    Thanks to the company’s IPO, however, the firm is loaded with over $400 million in cash, or more than 20 percent of the share’s current price.

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  • Action to take: Although profitability is a ways off, the company’s strong balance sheet, revenue growth, and underlying strength of the family rental market point to a potential big winner here. Investors can buy shares here and invest in an early-stage tech company that still has substantial insider ownership and buyers.

    For traders, shares seem to be forming a bottom here following a decline in the share price since the firm went public. A longer-term option trade like the March $12.50 calls, last going for about $1.20, could deliver high double-digit returns in the months ahead.

     

    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.

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