When a top-level insider makes a large purchase in their own company, it’s often worth taking a closer look. It’s not a stretch to say that these individuals are some of the most informed participants in the market.
In this report, we are going to highlight some interesting insider buying at Blackbird PLC (BIRD:LN). Blackbird, which was formerly known as Forbidden Technologies PLC, is a UK technology company that offers a cloud-native video editing and publishing platform. The company is listed on the Alternative Investment Market (AIM) of the London Stock Exchange and currently has a market capitalization of £126 million.
Blackbird: Insider Buying
Our records show that in late April, Blackbird’s CEO Ian McDonough made two large purchases of stock. On 26 April, the insider bought 300,000 shares at a price of £0.26 per share. Then, on 28 April, he added another 528,000 shares at a price of £0.29 per share. Combined, these purchases cost the insider about £230,000.
This director dealing activity stands out for a couple of reasons. Firstly, these are large purchases, both in nominal and relative terms. Our data shows that these purchases have increased the size of McDonough’s holding by about 10%. This suggests that he is confident the stock is set to move higher.
Secondly, McDonough has a good track record when it comes to timing his purchases well. Our model gives the insider a long-term trading IQ of 119 and a short-term trading IQ of 114.
Blackbird has signed a number of major contracts recently. Earlier this year, for example, the group signed a deal with EVS, the leader in live video technology for broadcast and new media productions. It also announced a partnership with LiveU, which offers end-to-end solutions in its key sectors of live sport and news.
More recently, the group announced a major deal with UK telecommunications giant BT. BT’s Content Operations team will use Blackbird to access and edit multiple live broadcast streams of sports and other content for the fast production of assets for downstream distribution to over the top (OTT) and video on demand (VOD) channels for viewers to enjoy.
Given the company’s momentum at the moment, we see the insider buying here as bullish.