SURG

SurgePays ($SURG) CEO Reverses Course: Makes First Purchase After Year of Selling Following AT&T Partnership

05/19/2025 21:18

SurgePays Inc ($SURG) CEO Kevin Cox purchased 15,073 shares on May 16th at an average price of $2.75 per share. The transaction totaled $41,450.75, with SEC filings indicating the purchase price ranged between $2.75 and $2.76 per share. This purchase represents a significant shift in pattern for the CEO, who had previously been selling shares consistently throughout 2024. Between July and December 2024, Cox executed multiple sales transactions, specifically on July 2, August 2, September 3, October 2, November 4, and December 3, disposing of a total of 198,870 shares. Many of these previous sales were related to Restricted Stock Award (RSA) vestings. SurgePays' stock has experienced considerable volatility over the past 12 months. Starting from $3.42 in early June 2024, it plummeted to $1.99 by mid-August 2024 and fell further to $1.14 by mid-March 2025. However, following the announcement of a partnership with AT&T on March 26, 2025, the stock surged 69% in a single day, jumping from $1.38 to $2.35. The AT&T partnership has emerged as a pivotal development for SurgePays. The company has projected at least $200 million in revenue over the next year through this alliance and aims to achieve positive cash flow by the end of 2025. Despite this optimistic outlook, SurgePays has struggled with disappointing financial results in recent quarters. In its most recent earnings release on May 13, 2025, SurgePays reported a loss of $0.38 per share for Q1 2025, worse than the analyst consensus estimate of a $0.23 loss. Quarterly revenue came in at $10.58 million, representing a 66.3% year-over-year decline and falling short of the expected $12.18 million. SurgePays is a small-cap company operating in the fintech and telecommunications sectors, with a current market capitalization of approximately $48 million. The company has been making strategic moves to expand its business, including the promotion of Derron Winfrey to President of Sales and Operations in April. Additionally, SurgePays announced a $5 million share repurchase program in August 2024, signaling management's belief that the stock was significantly undervalued at that time. The CEO's recent personal purchase further reinforces his confidence in the company's future. Analysts currently maintain a 'buy' rating on SurgePays, with a median 12-month price target of $6.88, substantially higher than the current share price. However, investors should note that the company has consistently missed earnings expectations over several quarters. Insider buying is generally considered a positive signal, indicating management's confidence in the company's prospects. Cox's purchase likely reflects his belief in the revenue growth and improved cash flow expected from the AT&T partnership. Nevertheless, investors may want to approach cautiously until tangible improvements in financial performance materialize.

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