Hey there, I actually answered a question on Knight not too long ago. They recently issued a shelf prospectus, which means they are able to issue shares up to 24 months in the future. There has also been insider buying from the CEO. This presents somewhat of a unique situation because of the overall makeup and strategy of the company. Here's my answer from a couple weeks ago:
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The shelf prospectus is essentially a short form prospectus that allows a company to issue shares over a particular time period. So essentially Knight doesn't want to issue all of the shares now, but acknowledges it might want to when the time is optimal. An interesting thing about this is Knight's founder Goodman doesn't like debt. Instead, he's stated that he likes to issue shares when the stock is overvalued. So, this may be partially why the company is organizing something like this. Maybe he expects a bounce in price?
Keep in mind, this doesn't always just have to be equity. The company can issue debt securities as well.
The company's CEO Jon Goodman is very well respected and has proven to be able to build a reputable company in the past.
However, people have been growing impatient with the company for some time now. The insider purchase by Goodman is the biggest in a while, and it's by the founder no less, but in the grand scheme of things it's quite a small purchase.
For me, a bet on Knight is a bet on Goodman. He owns a significant amount of Knight shares, and like I said has proven to build up a successful company before. It just depends if you think he can do it again.
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The stock is pretty beat up right now, and by the looks of it the CEO thinks it is too with the shelf prospectus and the fact he's purchased shares. This seems like a strategy by him to take advantage of a share offering down the line when shares recover.
However, just because he's doing this doesn't mean the share price is going to increase. It only looks like he thinks it's going to. I'll reiterate the fact in my original answer, owning Knight right now is essentially a bet on management, and is going to require some extensive patience.