Two Insiders at Matterport Just Bought Stock

Insider transaction activity can help investors generate alpha. Insiders are some of the most informed participants in the market meaning their stock purchases and sales can provide valuable trading signals.

In this report, we are going to highlight some interesting insider buying at Matterport Inc (MTTR:US). Matterport is a leading spatial data company that is digitizing the built world. Its solutions are designed to help companies and individuals better manage their real estate assets. The company is listed on the Nasdaq and currently has a market capitalization of around $753.0 million.

Insider Buying Activity

2iQ data shows that earlier this month, two insiders at Matterport purchased stock. On August 16, board member Peter Hebert purchased 50,000 shares at a price of $2.50 per share. Then, on August 17, board member Jason Krikorian bought 100,000 shares at a price of $2.46 per share. Combined, the two insiders invested around $371,000 in the company.

Investment Experience

This trading activity is notable due to the fact that both insiders have investment backgrounds. Mr. Hebert – who has served on the board since 2013 – is the co-founder of Lux Capital, where he has served as the Managing Partner since 2000. Meanwhile, Mr. Krikorian – who has served on the board since 2014 – previously served as a General Partner of DCM, an international venture capital firm, from 2010 to 2022. Given their backgrounds, these insiders are likely to have a good understanding of Matterport’s investment potential.

Strong Growth

Matterport’s recent Q2 results showed that the company is growing at a rapid pace and getting closer to achieving profitability. 

For the quarter, revenue came in at $39.6 million, up 39% year on year. Meanwhile, total subscribers increased to 827,000, up 34% year on year.

Looking ahead, the company raised its 2023 non-GAAP loss per share guidance. It also said that thanks to its recent restructuring, it’s aiming to hit its operational cash flow profitability goal in 2024, a full year ahead of its previous plan.

“The second quarter execution was pivotal for the company this year. We delivered record subscription and services revenue while doubling down on our efficiency initiatives to deliver step function productivity gains in the second half of 2023,” commented Chairman and CEO RJ Pittman.

In light of these results and the guidance, we see the insider buying here as a bullish development.