Martin Wygod, a director at Forian Inc (FORA), recently added 9,002 shares to his stake. The buy increased his holdings by 3.6 percent, and came to a total purchase price of just over $90,000.
This is the third buy from the director in the past month, including a 3,700 share buy in early October, and an 11,844 share buy in September. Other directors have also been buyers throughout the year.
Overall, company insiders own nearly 43 percent of shares.
Shares of the predictive analytics software company for the cannabis industry have dropped over 50 percent since going public back in March, as the overall sector has been out of favor. However, revenue at the company is up nearly 4,000 percent in the past year, and the company is trending toward profitability.
Action to take: The large amount of insider ownership ensures the company is being run solidly for the long haul, and shares can likely move substantially higher when the cannabis sector once again moves in favor with the market. Investors may like shares at or near today’s prices as a growth play.
For traders, shares have been relatively range-bound over the past few months. That bodes well for a strategy like selling the March $10 puts. While a near-the-money trade, based on the latest bid/ask spread, traders could be well north of $3 to potentially buy shares at $10 come next March.
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.