In this series, we return to previous insider trading reports to examine how a company’s stock has performed.
In this edition, we revisit our report on Everything Blockchain Inc (OBTX:US) from July 30, 2021.
Why should you track stock prices changes after insider trades?
2iQ Research regularly produces reports on significant insider trading activity.
When corporate insiders buy company shares, it's usually an indication that the stock's future prospects could be positive. Revisiting insider activity helps augment other investment analysis you may be conducting.
Everything Blockchain insider trading activity
Everything Blockchain is a company focused on blockchain technologies. It also provides blockchain-related consulting services to businesses and individuals. 2iQ reported on the bullish investment patterns of two prominent insiders.
Between July 6 and 16, 2021 Chief Financial Officer Michael Hawkins purchased OBTX shares and preferred OBTX shares. On July 6, 2021, he paid $46.59 a share for 50,000 preferred series A OBTX shares. On July 16, 2021, he purchased 125,000 preferred series B OBTX shares for $15.20 per share and 100,000 OBTX shares for $6.00 per share.
In total, Hawkins spent about $4.8 million on these transactions.
The large value of these transactions is interesting. Hawkins may have been confident in the company's prospects by spending nearly $5 million on company stock.
How is the stock performing now?
At the time of our last insider buying report, the regular stock price was at around €6, and rose significantly after Hawkins’ trades, reaching a peak of €16.23 at the end of July 2021, just weeks after his transaction. That was more than a 170% increase in value at the time.
Interestingly though, and we feel it is important to explore share value declines as much as covering continued rises in stocks, OBTX has ebbed and flowed somewhat in value. Currently, the share price is $7.65 USD.
Despite this pull back, Everything Blockchain has recently posted strong Q3 results, with CEO Eric Jaffe predicting “further growth in revenue” for Q4, as PulseChain is set to launch in addition to PULS tokens.
For more retrospectives on 2iQ’s insider buying reports, check out the 2iQ blog.