Virginia Boulet, a director at Velodyne Lidar (VLDR), recently bought 50,000 shares. The buy increased her stake by 417 percent, and came to a total purchase price of just over $108,500.
Another director also made a 5,000 share buy on the same day, for about the same price, doubling his holdings in shares as well. These buys came just two days after a third director also picked up 20,000 shares as well.
Otherwise, company insiders and a major owner have largely been sellers of shares since the company went public in 2020. Overall, insiders at the company still own 39.6 percent of shares.
Shares of the electric vehicle tech company are down nearly 85 percent in the past year as traders have shunned early-stage tech companies. Given the steep losses at the firm over the past year, it’s easy to see why, even though shares may now be oversold.
Action to take: Besides the large insider ownership and new buys here, shares look attractive given how far they’ve fallen as revenues have declined by less than 2 percent in the past year.
Investors can likely see the value of shares soar in the years ahead as this technology hits commercial development.
While shares are already inexpensive, traders could leverage a move higher. The January 2023 $2.50 calls, last going for about $0.57, offer triple-digit returns on a rally in shares at any point over the rest of the year.
But given the low price of shares, traders might want to skip on having to deal with option premiums and timing on this trade.
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.