Gregg Lowe Is The President of Wolfspeed, Inc. (NYSE:WOLF) And They Just Picked Up 1.1% More Shares

By
Simply Wall St
Published
May 15, 2022
NYSE:WOLF
Source: Shutterstock

Potential Wolfspeed, Inc. (NYSE:WOLF) shareholders may wish to note that the President, Gregg Lowe, recently bought US$256k worth of stock, paying US$64.11 for each share. Although the purchase only increased their holding by 1.1%, it is still a solid purchase in our view.

See our latest analysis for Wolfspeed

The Last 12 Months Of Insider Transactions At Wolfspeed

Notably, that recent purchase by Gregg Lowe is the biggest insider purchase of Wolfspeed shares that we've seen in the last year. Even though the purchase was made at a significantly lower price than the recent price (US$78.07), we still think insider buying is a positive. 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.

Wolfspeed insiders may have bought shares in the last year, but they didn't sell any. The average buy price was around US$73.51. It's great to see insiders putting their own cash into the company's stock, albeit at below the recent share price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
NYSE:WOLF Insider Trading Volume May 15th 2022

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership of Wolfspeed

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 0.6% of Wolfspeed shares, worth about US$53m. 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 Do The Wolfspeed Insider Transactions Indicate?

It is good 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. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we found 2 warning signs for Wolfspeed that deserve your attention before buying any shares.

But note: Wolfspeed may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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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