SuperCom Ltd. (NASDAQ:SPCB) is currently up 45% on Wednesday due to insider buying. Earlier today, the company announced that President Aerie Trabelsi bought 512,000 shares SPCB shares on the open market.

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Founded in 1988, Supercom is “one of the world’s leading suppliers of traditional and digital identity solutions, providing advanced security, identification and security products and solutions to governments as well as private and public organizations around the world.

Today’s insider buying news was part of the buying program. This program allows you to buy up to 3 million SPCB shares on the open market.

Mr. Arie Trabelsi said: “I believe that SPCB’s current share price levels do not reflect the high intrinsic value of the company. This recent purchase of 512,000 SPCB shares and my purchase program gives me the opportunity to opportunistically acquire SuperCom shares and underlines my continued confidence in the Company.

Can Insider Buying Increase SPCB Stock?

SPCB daily stock chart

Investors are hoping that today’s move may be the start of something bigger for this penny stock. While stocks rose nearly 50% on the day, SPCB stock rose more than 77% at one point in the session.

At the start of the session, the stock had just emerged from new 52-week lows and averaged 418,000 shares by volume. With Thursday’s rally, the stock has already generated a volume of over 22 million shares.

When we turn to Wall Street estimates, there is only one registered analyst. For a company with a market cap of $ 12.5 million, it’s surprising that there are analysts who officially cover SuperCom.

In all respects, this analyst forecasts sales of $ 12.4 million this year, up 5.4% from 2020. In 2022, they expect revenue growth to accelerate to 16 , 9%, with total sales of $ 14.5 million.

On the earnings front, the company is likely to lose money in 2021 and 2022. While the expected losses of 26 cents per share this year are an increase from the loss of 9 cents per share in 2020, Expectations for 2022 call for these losses to drop by more than 50% to 11 cents a share.

At the time of publication, Bret Kenwell had (directly or indirectly) no position in any of the titles mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines.

Bret Kenwell is the director and author of Future Blue Chips and is on Twitter @BretKenwell.

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