CEO Discloses First Insider Buying at Kooth PLC

The CEO of a company, a key figure, is assumed to have a deep understanding of the said company's operations, financial health, and future prospects. If the CEO is willing to invest their own money in the company, it suggests that they believe the stock is undervalued and has the potential for future appreciation.

Kooth PLC (KOO:LON) is dedicated to providing accessible and secure spaces for individuals to enhance their mental health. Based in the UK, Kooth provides digital mental health to a multitude of individuals from children to adults. The company is listed on the London Stock Exchange and presently has a Market Cap of £107.99 million.

CEO’s Investment & Timing

On October 5, 2023, Timothy Barker, the CEO of Kooth PLC, purchased 6,756 ordinary shares at a price of £2.96 per share. In total, he invested around £20,000 in KOO stock. 

Furthermore, this is the first purchase in the company made by an insider in over two years. In numerics, Kooth’s stock has surged by a whopping 109.89% year-to-date.

Insider Experience

Prior to joining Kooth in 2020, Tim Barker served as both a Director and an Executive at multiple tech companies. He has served as the CEO of DataSift, a human-data platform, and also led the marketing for Salesforce across Europe. 

Barker possesses more than 30 years of experience in B2B software and is a noted figure in this industry. His aforementioned purchase could invite a surge of confidence in KOO stock.  

H1 2023 Figures

Kooth PLC disclosed its H1 2023 results on September 21, 2023, revealing robust growth for the period.

Revenues have surged by 29% to £11.7 million compared to £9.0 million in the same period last year. Annual Recurring Revenue (ARR) has seen a commendable 16% increase, reaching £21.4 million.

CEO Barker expressed his gratitude to the team for their transformative efforts during this period. He said in the report, “The first six months of 2023 have been a period of significant, and positive, change for Kooth. In March we announced our largest contract to date with the State of California which was finalised, post-period end, as a four year, $188m minimum value agreement.”

This deal looks to solidify Kooth's position as a major player in youth mental health, with the California go-live set for January 2024. This would include the rollout of the Kooth mobile app and strategic hires, showcasing the company's commitment to delivering innovative and accessible mental health solutions.

Considering this strong performance, the insider purchase can be viewed as a bullish signal.