Corporate insiders tend to have far more information on their companies than outsiders such as analysts and retail investors do. If these individuals are buying company stock, it’s often worth taking a closer look.

In this report, we are going to highlight a large insider stock purchase at Solid Power Inc (SLDP:US). Solid Power develops all-solid-state rechargeable battery technology, primarily for the electric vehicle (EV) market. Its aim is to develop batteries that last longer and are safer than traditional lithium-ion batteries. The company is listed on the Nasdaq and currently has a market cap of approximately $488.76 million.

Insider Buying at Solid Power

2iQ data shows that on March 10, Solid Power’s Lead Independent Director John Stephens purchased 214,500 SLDP shares at a price of $2.92 per share. This trade cost the insider $626,126 and increased his holding to 300,005 shares.

Financial Experience

Mr. Stephens – who joined the board in September 2021 – has over 35 years of accounting and finance expertise, including experience in areas such as financial planning, corporate development, accounting and accounting policy, tax, auditing, treasury, business planning, and financial, operational, and regulatory reporting. Previously, he was CFO of AT&T. Given his background, he is likely to have a good understanding of Solid Power’s financials.

What stands out here is the fact that Mr. Stephens has increased the size of his holding by around 250% with this trade. This suggests that he is very confident the stock is set to move higher.

Steady Progress

Solid Power’s recent Q4 results showed that the company is making progress towards its goals.

During the period, it began EV cell production, with initial EV cells expected to be delivered to partners in 2023. It also deepened its relationship with BMW through an expanded joint development agreement and secured Department of Energy funding to continue the development of its nickel- and cobalt-free cell. It noted that its electrolyte production facility is on track to be commissioned in the first quarter of 2023.

Importantly, the group had ample liquidity at the end of the period, with total liquidity amounting to $496,054. The group estimates that total cash investment in 2023 will be between $120 million and $140 million as it executes on its milestones.

“2023 will be an important development year for us as we begin scaling production of our electrolyte powder and look to deliver our A-sample EV cells to our joint development partners. Meeting those objectives will better position us to achieve our ultimate goal of becoming a leading supplier of sulfide-based electrolyte material. We remain intently focused on positioning Solid Power to deliver long-term value for our partners, our employees and our shareholders,” commented Interim CEO, President, and Chairman Dave Jansen.

In light of the progress the company is making, we see the insider buying here as a bullish signal.

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