Jason Karp, Chief Counsel at Qumu Corporation (QUMU), recently picked up 10,000 shares. The buy increased his holdings by 80 percent, and came to a total price of just over $20,000.
The buy comes one day after a 5,000 share buy from a director totaling $10,600. Throughout the past year, a number of insiders and directors have been buyers, with only one sale from the company CFO back in early September.
Overall, insiders own just over 5 percent of the company.
Shares of the video content measurement service are down nearly 60 percent in the past year, as the company has been unprofitable. However, a turnaround could be underway with the combination of insider buying and a flatlining performance in shares in recent weeks.
The company has almost half its market cap in net cash on the books right now, so if it can improve its earnings and keep costs down, a rebound in earnings could lead to a big rally in shares from here.
Action to take: Given the low price in shares, investors and traders alike may want to buy some shares on the potential for the company to move higher, whether through a buyout offer from a competitor or a rebound in profitability.
For traders, the May $2.50 calls, last going for about $0.45, could perform well on a rally in shares, especially if the stock moves high enough for the option to move in-the-money. Traders should look to profit from any short-term jump in the stock.
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.