INTZ

Intrusion ($INTZ) CEO Adds 1,091 Shares—A Modest Vote of Confidence Amid Improving Metrics

07/03/2025 00:48

Plano-based cybersecurity vendor Intrusion ($INTZ) sells AI-enabled network-security platforms such as INTRUSION Shield and the newly launched Shield Sentinel to U.S. government agencies and mid-to-large enterprises. What matters to investors today is a small insider purchase disclosed on July 2: CEO Anthony Scott bought 1,091 shares at an average of $1.95 on June 30, spending roughly $2,124. While this extends a pattern of tiny ESPP-driven buys that began last year, the position represents just 0.006 percent of the 19.9 million shares outstanding—hardly a decisive wager. In short, it is a modest confidence signal, not a strong directional call. The share price tells a story of extreme volatility. After a late-December spike from $0.45 to $5.68, the stock collapsed below $1 before clawing back into the low-$2 range in June 2025. It now trades above its 50-day moving average ($1.74), with $1.50 acting as near-term support and $2.50 as overhead resistance. The takeaway: watch whether volume surges as the stock challenges that $2.50 ceiling. Fundamentally, losses are shrinking but far from gone. First-quarter 2025 revenue rose 57 percent year-over-year to $1.78 million, while the EPS loss narrowed to –$0.11. The balance sheet shows $10.74 million in cash against just $1.99 million of debt, so liquidity is not a problem. Still, operating margin sits at –118 percent, and ROE at –134 percent. Analysts expect Q2 revenue of $1.8 million and an EPS loss of –$0.09; beating those numbers would reinforce the “loss-compression” narrative. Keep an eye, however, on the up-to-$10 million SEPA agreement with Streeterville, which could introduce dilution if tapped aggressively. Macro conditions tilt in favor of small-caps: rate-cut hopes, easing tariff pressures, and broader risk-on sentiment are drawing capital down the market-cap ladder. Even so, investors are rewarding hard evidence of operational progress over blue-sky stories. Intrusion’s price-to-sales ratio of 3.5 sits slightly below the small-cap cybersecurity peer average, but negative earnings mean any deceleration in topline growth would trigger a valuation reset. Actionable guideposts: 1) sustained closes above $2.50 on at-least-double average volume would suggest momentum traders are in control; 2) a breakdown below $1.50 accompanied by accelerating cash burn would warrant caution; 3) any open-market insider buying beyond the ESPP framework would materially upgrade the quality of the insider signal. Simply put, let management’s wallet—and the next earnings print—confirm the story before committing significant capital. Playing defense in a defensive sector can still pay off.