52

FTCI

FTC Solar($FTCI) Directors Pour $60 Million Into Stock—Exceeding Company's Market Cap—Despite Ongoing Financial Struggles

04/03/2025 13:03

Sentiment

Serial Buy

Summary

  • Two directors of FTC Solar, Ahmad Chatila and Isidoro Quiroga Cortes, have purchased a total of $60 million in company stock over the past 10 months, significantly exceeding the company's current market cap of $36 million.
  • This substantial insider buying occurred despite the company's declining revenue and continuing net losses.
  • Following the concentrated buying, the stock temporarily surged 238%, but has since retreated and now trades below the insiders' average purchase price.

POSITIVE

  • The consistent purchase of $60 million in stock by two directors, exceeding the company's market cap, demonstrates strong confidence in its long-term value.
  • Newly appointed CEO Yann Brandt also bought approximately $160,000 worth of shares in December 2024.
  • Analysts' average price target ($4.50) is set more than 50% above the current stock price.
  • Recent quarterly revenue ($13.20M) exceeded analyst expectations ($11.61M).

NEGATIVE

  • The company has recorded a net loss of $48.61 million over the past 12 months, with revenue continuing to decline year-over-year.
  • Gross profit margin of -26.59% suggests inefficient operations or scaling challenges.
  • The entire solar industry is struggling with high interest rates and increasing project costs.
  • After temporarily rising following massive insider purchases in August and September, the stock has since fallen below many of the insider purchase prices.

Expert

The substantial insider buying at FTC Solar represents a noteworthy phenomenon in the renewable energy sector. While the directors' extraordinary capital commitment despite financial difficulties demonstrates strong conviction in long-term value, investors should approach cautiously unless operational improvements materialize to support this confidence.

Previous Closing Price

$4.09

-0.06(1.45%)

Average Insider Trading Data Over the Past Year

$2.54

Purchase Average Price

$2.63

Sale Average Price

$59.93M

Purchase Amount

$6.94K

Sale Amount

Transaction related to News

Trading Date

Filing Date

Insider

Title

Type

Avg. Price

Trans. Value

05/19/2025

05/19/2025

Sale

$

Over the past 10 months, two directors of solar tracking system manufacturer $FTCI (FTC Solar) have poured nearly $60 million into company stock—a figure that significantly exceeds the company's current market capitalization of approximately $36 million. This remarkable display of insider confidence comes despite the small-cap company's ongoing financial struggles. FTC Solar directors Ahmad Chatila and Isidoro Quiroga Cortes executed a total of 26 large stock purchases between June 2024 and April 2025. What's particularly notable is that their buying activity intensified during periods of sharp stock price declines. Chatila began with approximately 2.23 million shares (worth about $9.9 million) in mid-June 2024, paying between $4.40 and $4.50 per share. When the stock plummeted to $2.30 in August, he acquired another 2.12 million shares, and as the price further dropped to $2.10 in September, he purchased an additional 2.38 million shares. Most recently, in early April 2025, he added roughly 33,000 more shares to his holdings. Meanwhile, Quiroga Cortes demonstrated even more aggressive buying behavior. In mid-August 2024, as the stock crashed to between $2.20 and $2.60, he purchased approximately 13.61 million shares, investing a total of $32.3 million. This represents an unusually large investment by a single insider in a small-cap company over such a short timeframe. This substantial insider buying stands in stark contrast to FTC Solar's serious financial challenges. In its most recent earnings report for Q4 2024, the company posted revenue of $13.20 million—a 43.1% decrease compared to the same period the previous year. This revenue decline has persisted since 2023, and the company continues to struggle with profitability. Its trailing twelve-month net loss stands at $48.61 million. Amid these difficulties, the company appointed Yann Brandt as its new CEO in July 2024. Brandt himself demonstrated confidence in the company by purchasing approximately 50,000 shares (worth about $160,000) in mid-December 2024. Additionally, the company implemented a 10-for-1 reverse stock split on November 29, 2024, and completed a promissory note private placement in December. The aggressive insider buying has occasionally coincided with positive stock performance. Following the massive purchases in mid-August, $FTCI stock began a strong rally in mid-September, eventually reaching $7.10 on October 24, 2024—a 238% increase from its early August low of $2.10. However, the stock has since retreated and currently trades around $2.90 as of early April 2025. FTC Solar's challenges reflect broader trends in the solar industry, which has been grappling with high interest rates and increasing project costs. While solar stocks experienced a temporary boost in July 2024 following a CPI report that raised rate-cut expectations, market uncertainty has continued to drive volatility in the sector. It's worth noting that on April 1, 2025, CFO Cathy Behnen sold 2,640 shares to satisfy tax obligations related to vesting restricted stock units. While this contrasts with the buying trend of other insiders, the specified purpose of the sale suggests it should not be interpreted as a negative signal about the company's outlook. Analyst sentiment on FTC Solar remains mixed. As of March 2025, the average analyst rating for the company is 'Hold,' with a median 12-month price target of $4.50—above the current trading price. This suggests some level of optimism about the company's potential despite its challenging circumstances. Substantial insider buying is generally interpreted as a positive signal regarding a company's long-term value. The fact that both Chatila and Quiroga Cortes consistently purchased shares during price dips suggests they believe the company's intrinsic value exceeds its current market price. These significant investments, made despite the company's continued poor financial performance, indicate that insiders take a positive long-term view of FTC Solar's technology and market potential. As we move through 2025, the solar industry is looking for new opportunities amid the possibility of falling interest rates. Whether the strong buying conviction demonstrated by FTC Solar's insiders will translate into actual performance improvements remains to be seen in the coming quarters, depending on the company's financial results and shifts in the broader industry environment.

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