Surf Air Mobility Hits 8-Month High On Insiders Buying Company Stock: Retail Cheers
Surf Air Mobility’s board members purchased shares worth approximately $110,000 via open market transactions.
FollowShares of Surf Air Mobility Inc. (SRFM) surged as much as 7% in morning trade on Friday to hit an eight-month high of $6.41, building on its gain of 56% during the previous session that helped the stock make up for some of its year-to-date decline.
The stock reversed most of its gains, trading 0.36% lower in mid-day trade on Friday.
The uptick in Surf Air Mobility’s shares comes after the company announced that its board members purchased stock from the open market.
If the stock had maintained its gains, it would have pared its year-to-date decline to under 50% — most of this fall came in April, when the stock fell by over 40% after the company received a notice of possible delisting from the New York Stock Exchange.
Surf Air Mobility’s chairman, Carl Albert, purchased 14,500 shares, while co-founder and board member Sudhin Shahani purchased 17,237 shares. The aggregate transaction is valued at approximately $110,000.
“We have near and midterm goals to increase value for our shareholders. We are firmly and financially committed to successful execution of our Transformation Plan,” said Albert.
Retail traders on Stocktwits expressed optimism about Surf Air Mobility’s turnaround plan, which includes securing a $50 million term loan. The company expects to become profitable in 2025.
The stock purchase by board members indicates the confidence insiders have in the company’s four-phase transformation plan.
While some retail traders remained confident about the stock’s long-term prospects, others may now regret not taking profits when they had the chance earlier in the day.
Surf Air Mobility, a Los Angeles-based regional air mobility service, currently operates Cessna Caravan aircraft, which have a range of a little over 1,200 miles, with a top speed of 213 miles per hour.
The company is also developing an AI-powered airline software operating system. It also has electric powertrain technology that is currently in the process of being certified.
Surf Air Mobility’s shares have declined by 44% year-to-date.
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