Shares of Bragg Gaming (NASDAQ: BRAG) surged on Tuesday after the company announced recent insider stock purchases and forecasted double-digit revenue growth for next year.
By midday Tuesday, Bragg Gaming’s stock had climbed 13.64%, with trading volume more than double the daily average. The company stated that insiders had acquired a “significant” amount of stock, indicating management’s confidence in the company’s undervalued shares.
“The alignment between management’s insider purchases and our strategic roadmap demonstrates that we’re not just talking about value creation — we’re investing alongside our shareholders while actively pursuing paths to enhanced liquidity,” said CEO Matevž Mazij in a statement.
Insider buying is generally seen positively across industries, as it suggests that executives anticipate stock appreciation and signals to investors that those with intimate knowledge of the company see value in its shares.
While Bragg Gaming, based in Toronto, did not provide specific financial guidance, it did project double-digit topline growth for the coming year. Additionally, the company anticipates expanding profit margins and improved operational leverage, with formal guidance expected early next year.
“Bragg is actively advancing a robust pipeline of opportunities that is anticipated to drive strong momentum as we enter 2025. The outlook for 2025 remains positive, with expectations of sustained double-digit top line growth, expanding bottom line margins, and increased operational leverage, further strengthening Bragg’s position in the market,” according to the statement.
Bragg Gaming offers internet casino and sportsbook technology services to gaming operators through its ORYX Gaming brand.
In November 2023, a significant Bragg investor urged the company to consider a sale to unlock shareholder value. Five months later, the firm formed a committee to explore strategic options, sparking a stock rally.
However, after ultimately deciding against a sale, Bragg’s stock experienced a multimonth slide. CEO Matevž Mazij noted that the strategic review process provided crucial insights.
“The strategic review process provided invaluable insights into the key factors potential acquirers prioritize when crafting bids that accurately reflect our intrinsic value,” Mazij concluded. “We’ve identified key focus areas, such as stronger cash generation, increased revenue diversification, accelerated proprietary content growth, and enhanced margins. These are tangible, actionable targets that have been at the heart of our strategic initiatives, and we believe are achievable under our 2025 plan.”
