Duy-Loan Le Is The Independent Director of Wolfspeed, Inc. (NYSE:WOLF) And They Just Picked Up 5.5% 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$100 per share to buy US$100k worth of the stock. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 5.5%.
Check out our latest analysis for Wolfspeed
Wolfspeed Insider Transactions Over The Last Year
Notably, that recent purchase by Independent Director Duy-Loan Le was not the only time they bought Wolfspeed shares this year. Earlier in the year, they paid US$106 per share in a US$106k purchase. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$96.59). It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Duy-Loan Le was the only individual insider to buy shares in the last twelve months.
Duy-Loan Le bought a total of 3.00k shares over the year at an average price of US$96.81. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Does Wolfspeed Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Wolfspeed insiders own about US$64m worth of shares. That equates to 0.5% of the company. 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 the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Wolfspeed insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Wolfspeed. To assist with this, we've discovered 3 warning signs that you should run your eye over to get a better picture of Wolfspeed.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.
