Newegg (NEGG) closed nearly 40% higher on Thursday after data showed an insider has been loading up on company shares since early July.

Vladimir Galkin has bought over 150,000 shares of the e-commerce firm in August (to date) on top of more than 1.2 million NEGG shares he bought last month.

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Newegg stock has been nothing short of life-changing for investors in 2025. At the time of writing, it’s trading at $90 – up a massive 2,875% from its year-to-date low.

Galkin’s recent investments are meaningfully positive for NEGG stock since they indicate confidence in the company’s future.

Accumulating more than 1.3 million shares of the Nasdaq-listed firm, Galkin is essentially suggesting he sees the e-commerce stock as undervalued with significant potential for upside at current levels.

This kind of insider activity often attracts retail and institutional investors, significantly fueling bullish sentiment. Plus, it reduces the available float, potentially amplifying price moves if demand rises.

While Vladimir Galkin has significantly raised his stake in Newegg shares in recent weeks, caution is, nonetheless, warranted in buying them at current levels.

Why? Because much of NEGG’s dramatic surge this year has been related to speculative buying and retail frenzy, not fundamental strength.

If anything, the Nasdaq-listed firm has actually been grappling with a revenue decline. In fiscal 2024, Newegg generated about $1.24 billion in revenue, down some 17.3% on a year-over-year basis.

What’s also worth mentioning is that NEGG stock does not currently receive coverage from Wall Street analysts as tracked by Barchart, another major red flag for serious investors.

Without institutional coverage, you lack access to professional earnings forecasts, valuation models, and risk assessments. This creates an information vacuum, making it harder to gauge fair value.

Moreover, it signals major funds are avoiding Newegg stock, which can limit liquidity and increase volatility. In short, despite Galkin’s purchases, NEGG shares remain a speculative bet at best in the second half of 2025.

On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com