US Global Investors Shares Face Critical Technical Test Amid Persistent Decline

Shares of asset management firm US Global Investors continue to face significant downward pressure, extending a troubling pattern of losses. The stock registered a decline of nearly two percent to close out the week, bringing it dangerously close to breaching a key technical support level. Market participants are questioning whether recent insider buying activity by the CEO can provide enough momentum to reverse the current negative trend.

Technical and Fundamental Pressures Mount

From a chart perspective, the equity has exhibited sustained weakness for several weeks. Both short-term and long-term moving averages are issuing sell signals, confirming the bearish momentum that has been in place since mid-August. The stock has declined almost six percent during this downtrend. A particular concern for technical analysts is that the most recent sell-off occurred on above-average trading volume, which often indicates persistent and meaningful selling pressure.

The immediate technical outlook hinges on the $2.43 price level, which represents a critical support threshold. A decisive break below this point could trigger further losses. For the bearish trend to be invalidated, the share price would first need to reclaim and consolidate above the resistance zones at $2.44 and $2.45.

Underpinning the negative sentiment are the company’s fundamental results from May 2025, which revealed several challenges:
* Operational revenue of $2.1 million
* A net loss of $382,000, equating to a loss of $0.03 per share
* A decline in assets under management, falling from $1.5 billion to $1.2 billion

Should investors sell immediately? Or is it worth buying US Global Investors?

Despite these losses, the company has maintained its commitment to returning capital to shareholders, with its current dividend policy offering a yield of 3.7 percent.

Potential Catalysts: New ETF and Insider Confidence

Amid the prevailing negativity, two developments offer a glimmer of optimism. The firm recently launched the Technology and Aerospace & Defense ETF (ticker: WAR) in December 2024. This new fund targets high-growth sectors including cybersecurity, semiconductors, and electronic warfare.

In a separate but significant move, insider and CEO Frank E. Holmes demonstrated confidence in the company’s prospects by acquiring 999 shares approximately 30 days ago. Such purchases by key executives are frequently interpreted as a positive signal of internal belief in the company’s valuation and future.

The central question for investors is whether these positive factors will be sufficient to counteract the powerful technical downtrend. The trading sessions ahead will be decisive in determining if the support at $2.43 will hold firm or if the stock is poised for a deeper correction.