Neil Gagnon, a major holder at SecureWorks Corp (SCWX), recently bought 6,725 shares. The buy increased his holdings by less than 1 percent, and came to a total cost of $45,967.
Gagnon has been a regular and steady buyer of shares going back to June 2022. Going further back, several company insiders have also been buyers, including the company CEO and CFO. The last insider sale came from a fund that was a major holder in late 2021.
Overall, insiders own 30.5 percent of SecureWorks shares.
Shares of the cybersecurity company are down nearly a third over the past year, and the company has been losing money. Revenues dropped 22 percent.
While the stock has been a poor performer, SecureWorks is relatively cash rich with over $80 million in net cash. So it’s likely to survive, as more leveraged cybersecurity companies struggle right now.
Action to take: Shares are likely undervalued if the company moves to profitability, but may take some time to do so. Long-term investors may like shares at current prices or on any drop.
For traders, shares are near their low end for the year, and look ready to move higher from oversold levels. The October $7.50 calls, last going for about $0.70, could benefit from a sustained rally in the coming weeks for mid-double-digit profits or better.
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.