Loop Industries (NASDAQ: LOOP) insiders are buying in Q3, and investors should take heed. The buys are robust, include a variety of critical insiders, and are the first activity since Q1. Not only are insiders buying, but they are only buying in 2025 and have typically only bought since the IPO.
The single quarter in which they, as a group, sold stock was in Q4 2024, and that was CEO Daniel Solomita, who more than reversed the sales with his July activity.
Among the critical takeaways is that insiders already owned more than 20% of the shares and had no need to buy more stock. These purchases are significant and point to the company’s rapidly improving operations, operational quality, and earnings outlook, while highlighting a high confidence level among executives and board members.
What Does Loop Technologies Do?
It manufactures and sells polymer recycling technology. Its Infinite Loop system recycles items into clean, virgin polyethylene terephthalate or PET resin, including food and beverage containers, clothing fibers, and films. The resin can make similar items and is infinitely recyclable, a critical development for the reduce-reuse-recycle manufacturing economy.
It generates revenue through resin production and licensing its technologies, although it is still very early in commercialization.
As of early September, production is limited to its test facility, and a single license has been sold for a plant in Europe. The company’s flagship project is a partnership to build an Infinite Loop facility in India, with an opening slated for sometime in 2027.
Loop Industries Stock Set Up to Rocket Higher
The sell-side trends, including the short-interest, institutions, and analysts, have this market set up to rocket higher, provided a catalyst emerges. The takeaway is that the once bullish analysts, institutions, and short-sellers have left this market for dead.
Analysts' coverage dwindled to zero, while short interest is close to the same, revealing a loss of confidence driven by the extended timeline to commercialize the technology. The silver lining is that the sell-side can't get any less interested; lower lows are unlikely.
News that brings analysts back to the table would be a game-changer for this market; it may include new product licenses or the advancement of its flagship project.
Likewise, institutional activity has been tepid since the IPO, but there are signs that it is warming. The trend in 2025 is net-bullish quarterly activity, with each quarter including the first half of calendar Q3, showing activity ramping to a record high in the first half of Q3.
They own only 5% of the stock and provide a weak tailwind, but this activity aligns with the insiders, suggesting increasing confidence in the outlook. It includes a forecast for significant revenue gains in 2027, with growth accelerating to a high triple-digit level and sustaining hyper growth for the next several years.
Profitability is forecasted for 2028 and is also expected to improve significantly each year thereafter.
Loop Industries Is on Track, But There Are Risks for Investors
The risk for Loop Industries investors is primarily financial. The company says it has sufficient capital to see itself through commercializing its Indian facility, but construction hasn’t even begun.
The number of risks and potential delays is too numerous to count, suggesting additional capital will be needed, and that’s not counting the financing needed to complete the project. The takeaway is that Loop Industries is on track to meet its goals but still has a long way to go. The insider buying is a good sign, but it does not mitigate the risk.
The technical action in Loop Industries is promising, but it, too, comes with risks. The price action formed a bottom in late 2024 and early 2025 and is set up to advance in early September, but the upside may be limited. There is significant resistance at the $2 level that may not be broken without a new catalyst.
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The article "Loop Industries Insiders Buy Stock, Signal Confidence in Outlook" first appeared on MarketBeat.
