INTG

InterGroup Corp ($INTG) COO Buys $113K at Bottom, Stock Surges 35% Immediately

06/26/2025 21:31

InterGroup Corp ($INTG) Chief Operating Officer David Gonzalez sent a powerful confidence signal by making consecutive large-scale purchases at what appears to be the stock's bottom. This buying activity could represent a crucial turning point for investors. InterGroup Corp is a small-cap company with a market capitalization of approximately $29 million, operating as a holding company across various business sectors. The company manages a diversified portfolio through subsidiaries involved in real estate development, hotel operations, aircraft leasing, and other ventures. The most striking aspect is the timing and scale of COO Gonzalez's purchases. Over two consecutive days, June 24-25, he bought a total of 8,760 shares, investing approximately $113,000. Specifically, his first purchase was 6,060 shares at $12.62 right after the stock hit $11.16, followed by 2,700 shares at $13.56. Both transactions were executed under SEC Rule 10b5-1 plans, indicating these were pre-planned trades rather than spontaneous decisions. The timing of these purchases is particularly noteworthy. $INTG shares plummeted approximately 51% from $22.72 in June 2024 to a low of $11.16 in June 2025, before surging 35% to $15.12 on June 25, immediately following the COO's buying activity. This suggests that management's purchases served as a powerful signal to the market. The COO's consecutive purchases can be interpreted positively from multiple angles. First, it demonstrates that management views the current stock price as undervalued. Second, the execution under 10b5-1 plans indicates systematic investment decisions rather than trades based on material non-public information. Third, given the COO's role, these investment decisions likely reflect deep understanding of the company's operational status and future prospects. In contrast, Director John C Love sold 10,485 shares at $14.25 in December 2024, realizing approximately $149,000. While the stock price was higher than current levels at that time, considering the subsequent decline, it may have been well-timed selling. The company's financing situation also deserves attention. In late March, InterGroup's subsidiary entered into a $67 million mortgage loan agreement with Prime Finance. This is presumably for real estate business expansion or refinancing existing assets, and should contribute to improving the company's liquidity position. The positive signals investors should watch are clear. The immediate 35% surge following the COO's large purchases shows the market received management's signal positively. Additionally, the emergence of strong buying interest in the $11-12 range suggests this level could serve as technical support. However, there are factors requiring caution. The stock remains more than 30% below its 2024 highs, indicating fundamental recovery may take time. Given small-cap characteristics of high trading volume and volatility, correction possibilities following the sharp rally cannot be ruled out. In an optimistic scenario, the COO's purchases signal a business turning point, with growth strategies funded by the $67 million financing beginning to show results. This could see the stock recover to $18-20 levels. The most likely base case scenario involves sideways trading in the $12-15 range while awaiting substantial performance improvements. While the COO's purchases have reduced near-term downside risk, further upside requires earnings or business development news. In a risk scenario, economic slowdown or real estate market deterioration could negatively impact company operations. Despite the COO's purchases, the stock could potentially fall back below $10. Overall, $INTG has secured short-term rebound momentum based on strong management buying signals and completed financing. However, investors should keep in mind that sustained upward movement requires substantial business performance improvements as backing.