Bragg Gaming Surges on Insider Buying, Revenue Outlook

Shares of Bragg Gaming (NASDAQ: BRAG) soared Tuesday after the company said insiders have recently been buying the stock and that it expects double-digit revenue growth next year.

In midday trading on Tuesday, the stock was higher by 13.64% on volume that was more than double the daily average after the company said insiders recently acquired a “significant” amount of the stock, “demonstrating management’s confidence in the company’s undervalued shares.”

Regardless of industry, insider buying is typically viewed in a positive light because those purchases wouldn’t be made if executives didn’t expect the stock to appreciate and those moves signal to investors that those with intimate day-to-day knowledge of the company see value in the shares.

Bragg Gaming Bullish on 2025

Toronto-based Bragg didn’t get into specific financial guidance, but the company said it expects double-digit topline growth next year.

“Bragg is actively advancing a robust pipeline of opportunities that is anticipated to drive strong momentum as we enter 2025. The outlook for 2025 remains positive, with expectations of sustained double-digit top line growth, expanding bottom line margins, and increased operational leverage, further strengthening Bragg’s position in the market,” according to the statement.

Bragg provides internet casino and sportsbook technology services to gaming operators via its ORYX Gaming brand.

Lessons Learned from Strategic Review

In November 2023, a major Bragg investor pushed the company to consider a sale as a means of unlocking shareholder value. Five months later, the firm formed a committee to explore strategic options, sparking a rally by the stock.

That bullishness was short-lived as Bragg ultimately decided against a sale, prompting a multimonth slide by the stock, but Mazij said the company learned important lessons from the process.

“Furthermore, the strategic review process provided invaluable insights into the key factors potential acquirers prioritize when crafting bids that accurately reflect our intrinsic value,” concluded the chief executive officer. “We’ve identified key focus areas, such as stronger cash generation, increased revenue diversification, accelerated proprietary content growth, and enhanced margins. These are tangible, actionable targets that have been at the heart of our strategic initiatives, and we believe are achievable under our 2025 plan.”