💡GSE Systems [Ticker: GVP] an engineering services and technology simulation company. Today, we want to zoom in and dig in because one of the most important ‘company insiders’ is back in the game after 3 years. Yes, GSE’s CEO Justing Kyle Loudermilk added this week 100,000 new shares. Loudermilk’s cluster means he bought 25% more shares from his previous holdings. And as analysts, we cannot stop asking ourselves this question: Why is he doing that now?
📌GSE Systems’ CEO, Justin Kyle Loudermilk, bought 100,000 shares at $2.30. Also, other company insiders have positions from 2018 with an average floating loss (drawdown) between (29%) and (38%). Is this an opportunity to risk capital expecting higher prices?
📌Our goal is to investigate, search, and research the insiders to figure if they have ‘skin in the game.’ We cannot determine their level of commitment until we review the most relevant document in stock trading; SEC Form 4. This form allows us to know if the purchase is direct, indirect or just a company reward. [Note: C-level executives tend to receive partial compensation in stock options]
📌Finally. as we have all the answers to the questions in our checklist, we proceed to measure our risk based on historical levels and volume figures. Ross Givens, Senior Editor at The Insider Report works day in and day out with Volume Profile (available in Tradingview for Pro-accounts) to gauge multiple volume structures and to estimate targets to the upside and to the downside.
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