Kevin Weil, a President of product and business at Planet Labs (PL), recently bought 165,580 shares. The buy increased his holdings by over 15 percent, and came to a total purchase price of just over $995,000.
This is the second recent buy from insiders, as a company director bought 36,785 shares valued at over $245,000 the week before. These two buys constitute the only insider activity since the company went public.
Overall, insiders own about 14 percent of company shares.
The company operates one of the largest private satellite networks. These satellites are used to collect data, which customers can pay to access in a subscription-based platform. The company is one of many innovative tech stocks that has gone public this year, only to see shares take a big drop immediately. The stock is currently down about 40 percent from its IPO price.
Action to take: At present prices, shares look undervalued. The stocks surged nearly 16 percent in a day following the insider buy. While the company is still in its early stages and is a long ways from making a profit, revenue has been growing and competitors in the space are much smaller with fewer offerings. That suggests that shares could surge higher in the future.
For traders, the April $7.50 calls are a near-the-money trade. Last going for about $1.65, they could offer a leveraged return higher if shares are finally breaking their downtrend and start to head higher.
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.