Charles Townsend, a director at Gogo Inc. (GOGO), recently bought 200,000 shares. The buy increased his stake by 5%, and came to a total cost of $1.33 million.
He was joined by another director and major holder, who picked up 75,432 shares for a cost of just under $496,000. Similar director buys were also made in February, totaling about $2.5 million. Otherwise, there were just two insider sales in 2023.
Overall, Gogo insiders own 24.8% of shares.
The in-flight internet service provider is down 12% over the past year. Despite a 40% jump in revenue from increased demand for in-flight internet, Gogo barely managed to earn a profit, with a slim 3% profit margin.
Plus, Gogo raised significant debt in the past year, with its total debt load surging by 1,320%.
On a valuation basis, Gogo trades at about 14 times earnings, and is a leading player in a niche space.
Action to take: Shares have been trading in a multi-month range after selling off from their 2024 peak. The stock could be a strong contender to break out from here in the months ahead, meaning that momentum investors may like shares here.
Gogo does not currently pay a dividend.
For traders, the August $9 calls, last trading for about $0.75, could see mid-to-high double-digit returns in the months ahead if shares break higher out of their recent range.
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 company mentioned in this article.