Investing

CEO Roger Kahn Cranks up Stake in Bridgeline Digital to 5.5% & Ladenburg Initiates Coverage

On Thursday evening, a form 4 filed by marketing technology company, Bridgeline Digital (US:BLIN) revealed yet another insider purchase by the groups CEO, Roger Kahn.

In this latest filing, Khan purchased a total of 50,983 shares at an average price of $1.365 per share. The total value of the purchase was $69,541.18 before fees.

The transaction brings Kahn’s total share count in BLIN to 563,065, worth around ~$800,000 at current market prices.

More interestingly, this latest transaction boosts Khan’s ownership in the company up to around ~5.5%, making him the largest insider on the register.

Roger started building his position in the company back in late May, when BLIN’s stock price began showing signs of stability after experiencing a slow and gradual share price decline from a significant spike in mid-2021.

BLIN saw a significant wave of buying from retail investors as the stock became a “meme” across various forums.

The jump in ownership was boosted by an award of 200,000 shares in mid-August as part of his CEO incentive plan.

Khan is showing his vote of confidence in the company, which is profitable with a market capitalisation of only $14.7 million.

Fintels insider accumulation score of 92.03 is bullish on the company as it ranks BLIN in the top 1% out of 14,538 screened companies. The stock screen identifies companies with the highest levels of insider accumulation in the past 90 days.

The chart illustrates the unplanned recent purchases made by the CEO:

For the recent third quarter, Bridgeline Digital grew revenue by 22% over the year to $4.2 million. Subscription and licences revenue made up $3.4 million or 80% of groups total sales.

BLIN’s gross profits rose 30% over the year to $2.9 million but the firm’s adjusted net loss fell -87% to $188,000.

Another positive was the growth in gross margins to 70% vs 65% in the prior year.

Bridgeline ended the quarter with $3.9 million which equates to one quarter of the stock’s market cap!

In more recent news, this week institution Ladenburg Thalmann initiated coverage on BLIN with a ‘buy’ recommendation and a bullish price target of $4.50.

Analyst Jon Hickman highlights how BLIN’s e-commerce focus is a unique offering in the MarTech space and believes the company can grow organic revenue by over 10% in FY23.

Hickman discusses how the current suite of eight apps is gaining increased market acceptance which is shown by the addition of new subscribers each quarter.

He particularly likes the buy-and-build strategy used by the company and the growing success from their ability to cross-sell the suite of apps to existing customers.

The firm believes the market is underestimating the revenue growth potential and hence the depressed company valuation.

This article originally appeared on Fintel

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