Yahoo Finance Insider Buying: The Wolfspeed, Inc. (NYSE:WOLF) Independent Director Just Bought 18% More Shares
Investors who take an interest in Wolfspeed, Inc. (NYSE:WOLF) should definitely note that the Independent Director, Duy-Loan Le, recently paid US$90.98 per share to buy US$455k worth of the stock. That's a very solid buy in our book, and increased their holding by a noteworthy 18%.
View our latest analysis for Wolfspeed
Wolfspeed Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Independent Director John Replogle for US$505k worth of shares, at about US$67.65 per share. We do like to see buying, but this purchase was made at well below the current price of US$90.84. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
In the last twelve months insiders purchased 23.46k shares for US$1.9m. But insiders sold 1.00k shares worth US$76k. In the last twelve months there was more buying than selling by Wolfspeed insiders. Their average price was about US$79.15. We don't deny that it is nice to see insiders buying stock in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Wolfspeed is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 0.6% of Wolfspeed shares, worth about US$71m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Wolfspeed Insiders?
It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Insiders likely see value in Wolfspeed shares, given these transactions (along with notable insider ownership of the company). So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Wolfspeed.
Of course Wolfspeed may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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