Shares of the micro-mobility company Helbiz (NASDAQ:HLBZ) have lost about two-thirds of their value since it combined with GreenVision Acquisition Corp., a Special Purpose Acquisition Company, and began trading on the NASDAQ. However, this penny stock is gaining momentum and has increased over 53% in five days as its Founder and CEO, Salvatore Palella (>10% owner), is capitalizing on the low share price and buying HLBZ stock.
According to the recent SEC filing, Salvatore Palella bought HLBZ stock worth $709.81K. Moreover, our Insider Trading Activity tool shows that insiders, including Salvatore Palella and its CFO Giulio Profumo, bought HLBZ stock worth $778.8K in three months.
Is HLBZ a Good Stock to Buy?
HLBZ stock is not rated on TipRanks, and the drop in its price reflects the dilution from the stock sale and currency headwinds. Its mobility business witnessed a decline in revenues due to the adverse currency movement.
However, the company’s top executives buying shares is a positive indication. Palella is confident and said during the Q3 conference call, “Even with softer third quarter numbers, our performance year-to-date is solid, and we are confident we can exit the year with momentum.”
Palella also highlighted that the company’s efforts to optimize costs are bearing fruit, as it posted improved bottom-line performance in Q3 (adjusted net loss improved by 50% year-over-year).
While management is confident, investors should take caution before investing in penny stocks like HLBZ. Meanwhile, investors can use our Penny Stocks Screener to find attractive stocks.
