Kevin Weil, President of Product and Business at Planet Labs (PL), recently bought 274,000 shares. The buy increased his stake by 16 percent, and came to a total cost just over $997,000.
This marks the first insider activity in nearly a year and a half. The company’s CEO bought 19,230 shares in December 2021, as did Weil and another director. There have been no insider sales since the company went public.
Overall, insiders own 2.9 percent of the company.
The early-stage satellite data company has seen shares slide by one-third over the past year.
While the company grew revenues by nearly 43 percent, Planet Labs operates at a steep loss right now, a trend likely to continue for some time as the firm expands operations.
Satellites are expensive to design and get into orbit. But Planet Labs is able to monetize the data collected with long-term service contracts that could make it a highly profitable company in time.
Action to take: Investors may like shares as a speculative play here. The company is well positioned in its niche, and has enough cash on the balance sheet to outlast competitors and move higher as PL can move past its losses and towards profitability.
For traders, the July $5 calls, last going for about $0.30, offer mid-double-digit returns or better in the months ahead on a move higher for shares.
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.