SmartRent (SMRT) Hits 2025 High, Surges 5.81% on CEO's Insider Buys and Buyback Plan

SmartRent (SMRT) surged 5.81% on Wednesday, marking a three-day winning streak with a cumulative gain of 13.10%. The stock reached its highest intraday level since September 2025, climbing 14.84% during the session, as investor sentiment shifted amid strategic moves by the company and its leadership.

The rally was driven by CEO Frank Martell’s aggressive insider purchases, which totaled 150,000 shares of Class A common stock over three days. Martell’s acquisitions, valued at $1.4387 and $1.5313 per share, signaled strong confidence in the company’s long-term value. Insider buying often acts as a catalyst for short-term momentum, and the stock responded with a 11.3% jump on September 16 and a 5% rise the following day.

SmartRent’s broader corporate strategy also fueled optimism. In May 2025, the company authorized a $50 million stock repurchase plan, aiming to buy back up to 27.7% of its outstanding shares. This initiative aligns with management’s view that the stock is undervalued and reflects a commitment to boosting shareholder value. Combined with the CEO’s insider activity, the buyback plan reinforced a narrative of strategic de-risking, countering broader market volatility and the stock’s 4.9% year-to-date decline.

Analyst sentiment shifted in early September, with Wall Street Zen upgrading SmartRent from “sell” to “hold.” The adjustment reflected a reassessment of the company’s risk-reward profile, particularly in light of leadership’s confidence and the buyback plan. Such rating changes can influence institutional and retail investors, attracting a wider base of capital to a stock historically marked by high volatility.

Institutional activity further underscored the stock’s appeal. Insiders now own 9% of SmartRent, with executives acquiring 500,000 shares worth $653,600 in 90 days. Hedge funds and institutional investors, including CWM LLC, have also increased stakes, with some positions growing by over 900%. This growing alignment of interests between leadership and external investors highlights SmartRent’s potential as a speculative yet strategically positioned play in the smart home technology sector.

While SmartRent faces challenges, including a Q2 2025 net loss of $46.54 million and a projected negative EPS of -$0.14 for the year, recent actions by management and analysts have mitigated some concerns. The combination of insider purchases, share repurchases, and improved sentiment creates a narrative of value creation, offering investors a case for cautious optimism as the company navigates its path to profitability.