William Spencer, Co-founder and CEO of Planet Labs (PL), recently added 100,000 shares. The buy increased his holdings by 8 percent, and came to a total cost of $269,840.
This is the first insider buy since April, when a division president bought 274,000 shares. A number of company insiders were massive buyers at the end of 2022. Otherwise, the company’s CFO has been a steady seller of shares each month.
In total, company insiders own 2.9 percent of shares.
The satellite imaging company has seen shares get cut in half over the past year. As an early-stage company, Planet Labs is losing money and is nowhere near profitability.
However, they do have a cash-rich balance sheet, and can continue for years without having to issue debt or sell shares to raise capital.
Action to take: Planet Labs is one of many satellite companies that have grown in recent years, and is one of the larger players. They’re likely to make it through this cycle, and can potentially see higher returns in the years ahead as they move to profitability.
Shares look like a speculative buy now. Investors should take a small stake, given the volatility in shares.
For traders, the April 2024 $2.50 calls are an at-the-money trade. Last going for about $0.65, the options can potentially see high double-digit gains on a rally in the next seven 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.