Insider Buys Surge as Kustom Entertainment Eyes Cycurion Acquisition, Boosting Investor Confidence

Corporate News: Insider Confidence Grows Amid Acquisition Buzz

Insider Activity at Kustom Entertainment Inc.

On January 22 2026, Kustom Entertainment Inc. (NASDAQ: KUST) recorded significant insider purchasing activity. Chief Operating Officer Han Peng exercised 22,500 option shares under the 2022 Stock Option Plan at an exercise price of $2.04, which was the same as the closing price that day. The transaction increased his post‑exercise holdings to 26,983 shares. In addition, Chairman Ross Stanton and other executives made purchases of 58,333 and 3,333 shares respectively, all on the same day. The alignment of these transactions with the company’s announcement of a potential acquisition by Cycurion, Inc. suggests that senior management is positioning its interests to capture anticipated upside.

Market Context and Sentiment Dynamics

Kustom’s equity has suffered a near‑100 % decline over the last year, trading at $2.62 with a 52‑week low of $1.80. Despite weak fundamentals, the social‑media sentiment score is +89 and buzz level stands at 244 %, indicating that investor chatter remains overwhelmingly positive. This sentiment appears to be driven by the acquisition speculation, which positions Kustom as a low‑priced, high‑potential play for investors looking for exposure to Cycurion’s AI‑driven cybersecurity platform. The surge in buzz reflects active discussion of strategic fit and potential revenue synergies, even though the underlying share price remains volatile.

Implications for Investors

The insider purchases can be interpreted as a vote of confidence in the proposed deal. Two key points emerge:

1. Vote of Confidence – Executives accumulating shares suggests that they believe the acquisition will materially increase Kustom’s equity value. If the deal is completed, the company’s valuation could rise significantly, providing upside for shareholders.
2. Partial Pricing of Upside – The stock dipped only 0.17 % on the day of the transactions and gained 0.93 % over the week, indicating that the market has already partially priced in the potential upside. However, Kustom’s thin market cap of $2.1 million and limited liquidity mean that sizable trades could still move the price appreciably.

Because of the low liquidity, investors should maintain cautious position sizing and monitor any subsequent regulatory filings that could confirm or deny the acquisition.

Future Outlook

Should Cycurion complete the acquisition, Kustom’s digital media and video‑solutions capabilities would be integrated into Cycurion’s broader AI‑security ecosystem. This integration could unlock new revenue streams and strengthen the combined entity’s competitive position. The current insider alignment indicates that the leadership team is optimistic about the long‑term upside, but until a definitive agreement is announced and regulatory approvals are obtained, Kustom’s stock is likely to remain highly volatile, driven by speculative sentiment and limited liquidity.