Published on: December 10, 2024, 12:52h.
Last updated on: December 10, 2024, 01:02h.
Shares of Bragg Gaming (NASDAQ: BRAG) surged on Tuesday following reports of insider buying and projected double-digit revenue growth for the upcoming year.
The stock rose by 13.64% in midday trading on elevated volume, as insiders purchased a significant amount, demonstrating confidence in the undervalued shares.
CEO Matevž Mazij stated, “The alignment between management’s insider purchases and our strategic roadmap demonstrates that we’re investing alongside our shareholders while actively pursuing paths to enhanced liquidity.”
Insider buying is typically seen positively, indicating expected stock appreciation and management’s belief in share value.
Bragg Gaming Optimistic for 2025
Toronto-based Bragg anticipates double-digit revenue growth without specific financial guidance for the coming year.
The company expects expanded profit margins and operational leverage, with formal guidance anticipated in early 2025.
“Bragg is actively developing opportunities to drive momentum in 2025, with sustained double-digit growth, improved margins, and operational leverage to strengthen its market position,” according to the statement.
Bragg offers internet casino and sportsbook technology services through ORYX Gaming.
Strategic Review Insights
Following pressure in November 2023 to explore a sale for shareholder value, Bragg formed a committee to assess strategic options, leading to a stock rally.
Despite choosing not to sell, valuable lessons were learned, focusing on cash generation, revenue diversification, content growth, and margin enhancements under the 2025 plan.
CEO Mazij concluded, “These are tangible, actionable targets at the core of our strategies, believed to be achievable by 2025.”