SuperCom Ltd. (NASDAQ:SPCB) is currently up 45% on Wednesday due to insider buying. Earlier today, the company announced that Chairman Aerie Trabelsi purchased 512,000 shares of SPCB stock in the open market.
Founded in 1988, Supercom is “a global leading provider of traditional and digital identity solutions, providing advanced safety, identification, and security products and solutions to governments as well as private and public organizations around the world.”
Today’s insider buying news was part of the purchase program. That program allows for purchasing up to 3 million shares of SPCB stock in the open market.
Mr. Arie Trabelsi stated, “I believe the SPCB current stock price levels do not reflect the high intrinsic value of the company. This recent 512,000 SPCB shares purchase, and my purchase program provides me the ability to opportunistically acquire SuperCom shares and underscores my ongoing belief in the Company.”
Can Insider Buying Spark SPCB Stock Higher?
Investors are hoping that today’s move can be the start of something larger for this penny stock. While shares are up almost 50% on the day, SPCB stock was up more than 77% at one point in the session.
Coming into the session, the stock was fresh off new 52-week lows and averaged about 418,000 shares of volume. With Thursday’s rally, the stock has generated volume of more than 22 million shares already.
When we flip over to Wall Street estimates, there is only one analyst on record. For a company with a market capitalization of $12.5 million, it’s surprising there are any analysts that officially cover SuperCom.
In any regard, that analyst expects sales of $12.4 million this year, up 5.4% from 2020. In 2022, they expect revenue growth to accelerate to 16.9%, with total sales of $14.5 million.
On the earnings front, the company is likely to lose money in both 2021 and 2022. While this year’s forecasted losses of 26 cents a share are an increase from 2020’s loss of 9 cents a share, expectations for 2022 call for those losses to decline by more than 50% to 11 cents a share.
On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.