Insider Trading Report: SmartRent (SMRT)

Bruce Strohm, a director at SmartRent (SMRT) recently picked up 10,000 shares. The buy represents an initial stake for the director, with no prior shares owned. The total value of the shares came to just over $122,000.

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  • This represents the first insider transaction since the company went public in late August. Overall, company insiders still own 16 percent of shares.

    The smart home and smart building technology platform recently went public via SPAC, or special purpose acquisition company.

    Since going public, shares have returned a scant 4 percent. As an early-stage company, the firm is currently unprofitable, with steep losses. However, revenue is up nearly 275 percent over the past year, and the SPAC deal has left the company with over $53 million in cash.

    Action to take: Software platforms are an excellent business model, as companies have been able to turn software platforms into a recurring revenue business model. Shares have the potential for further moves higher in the months and potentially years ahead. Shares are far from paying a dividend, however.

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  • For traders, the short-term trend has been higher since the company went public. That makes for an attractive potential trade. The December $15 calls are a near-the-money trade. Last going for about $1.75, the trade has high-double to low triple-digit profits in the months ahead should shares continue higher.

     

    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.