Scott Wagner, a director at BILL Holdings (BILL), recently purchased 8,750 shares. The buy increased his stake by a massive 973 percent, and came to a total cost of $507,500.
The buy came a day after another director bought 17,710 shares, paying just over $1 million, and increasing their position by 92 percent. Prior to those buys, insiders have been sellers going back to 2021.
Overall, BILL Holdings insiders own about 4 percent of shares.
The business management software company is down over 40 percent in the past year. While revenues are up 33 percent, BILL has yet to turn a profit.
That said, the company is moving towards profitability. And forward earnings have moved from over 400 times last year to just over 30 times today.
Plus, BILL’s losses are now so narrow that its existing cash holdings are enough to sustain it for over 10 years.
Action to take: BILL has the financial position to make it through today’s challenging market, and a move to profitability should help shares move higher off their recent lows.
That makes the stock a speculative buy for investors now.
For traders, shares are moving off their lows, and could see a further uptrend in the coming months.
The February 2024 $75 calls, last going for about $4.10, could see high-double-digit returns on a further push higher. Traders may want to take profits if the option moves in-the-money.
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.