In a recent filing with the Securities and Exchange Commission (SEC), electric vehicle manufacturer Canoo (NASDAQ: GOEV) recently revealed that top shareholder, Tony Aquila has bought a considerable amount of shares of the company.
A top shareholder is one who owns more than 10% of the company.
Shares of Canoo were up 6.1% to close at $4.20 in the extended trade.
How Much Did Aquila Buy?
Tony Aquila, who is also the CEO and Executive Chairman of the company, bought 200,000 shares for a total amount of roughly $796,000.
Notably, this latest buyout follows Aquila’s recent acquisition of 800,000 shares of Canoo’s stock for an undisclosed amount.
Yet, despite the CEO’s confidence in the company’s prospects, other corporate insiders seem to not share the same sentiments.
The TipRanks’ Insider Trading Activity tool shows that confidence in GOEV is currently Negative based on informative transactions by four insiders over the past three months. Corporate Insiders have sold shares worth $17.9 million over this period.
Interestingly, TipRanks also provides a list of hot stocks that boast either a Very Positive or Positive insider confidence signal.
Investors Remain Optimistic about GOEV
However, despite the company reporting a wider-than-expected loss for the second quarter, top investors are upbeat about the company’s prospects and are loading up on its stock.
TipRanks’ Stock Investors tool shows that top investors currently have a Very Positive stance on GOEV. Further, 25.5% of the top portfolios tracked by TipRanks, increased their exposure to GOEV stock over the past 30 days.
Is GOEV Stock a Good Buy?
Overall, the Wall Street community is cautiously optimistic about the stock with a Moderate Buy consensus rating based on two Buys and one Hold. The GOEV average price target of $9.50 implies the stock has an upside potential of 139.9% from current levels. Shares have declined 37.6% over the past year.
Key Takeaways
With a massive upside potential of about 140% from its current levels, Tony Aquila’s conviction about his company’s stock does not seem wrong. However, persistent losses continue to scare away other insiders who have been heavily shorting the stock in recent times.
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