One of the biggest gainers in today’s market is little-known penny stock Blackboxstocks (NASDAQ:BLBX) stock. Shares of this fintech company are on a roll right now. Specifically, BLBX stock is up more than 50% in early afternoon trading.
Today’s movement comes on the heels of a Form 4 filed by the company. Reportedly, CEO Gust Kepler has purchased more than 1 million shares of the company’s stock, at an average price of $3 per share.
Given the fact that BLBX stock was trading at around 55 cents to start the day, this transaction certainly appears to have taken the market by surprise. Let’s dive into what investors may want to make of this unique mover in today’s market.
BLBX Stock Surges on Incredible Insider Buying Activity
Gust Kepler’s impressive acquisition of another 1.1 million shares of BLBX stock at $3 per share brings his total holdings of the company to just under 3.5 million shares. Given the outstanding shares of Blackboxstocks, the CEO owns roughly a quarter of the company. That’s something investors certainly want to see.
Why? Because it means management has skin in the game. And, while Kepler’s purchase appears to have taken place at a higher-than-market price (perhaps due to an ongoing stock offering), it’s clear Kepler believes in the company’s vision as a subscription-based platform for stock and options traders.
Of course, with most publicly traded companies, having a CEO with 25%-plus ownership isn’t common. This is a very small-cap stock prone to wild moves in the market. However, BLBX stock has also managed to find its way onto many investors’ watch lists today. I’ll be keeping my eye on this company to see how shares perform from here — and if they breach the $3 level anytime soon.
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Read More: Penny Stocks — How to Profit Without Getting Scammed
On the date of publication, Chris MacDonald did not hold (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.
