Damian Novak, Executive Chairman of Fresh Vine Wine Inc (VINE), recently bought 25,200 shares. The buy increased his stake by just under 0.5 percent, and came to a total price of just under $139,000.
This marks the first insider transaction at the company since it went public in the past two weeks. Since going public, shares have shed nearly 25 percent of their value.
Overall, insiders still own over 77 percent of the company.
Shares went public as the company, which focuses on low-calorie wine offerings, have seen revenue soar over 784 percent in the past year. The company is still in the early stages and remains unprofitable.
The stock has also followed a trend over the past few months, where any new company going public has faced intense selling pressure within the first few weeks of trading.
Action to take: Shares can likely recover, and with insiders owning an overwhelming amount of the company and being bullish here, long-term buyers could fare well over time. As long as the company can continue to grow its business, shares should appreciate in time.
For traders, a buying opportunity may emerge in the coming weeks. For the time being, no options trade on the company yet. While shares are cheap enough to trade outright, there also hasn’t been a long enough trading history to clearly show that shares look oversold on a technical as well as fundamental level.
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.