Independent Director of Wolfspeed Darren Jackson Buys 58% More Shares

Potential Wolfspeed, Inc. (NYSE:WOLF) shareholders may wish to note that the Independent Director, Darren Jackson, recently bought US$250k worth of stock, paying US$6.76 for each share. We reckon that's a good sign, especially since the purchase boosted their holding by 58%.

See our latest analysis for Wolfspeed

Wolfspeed Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Independent Director John Replogle bought US$260k worth of shares at a price of US$26.04 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$8.44). 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. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

Wolfspeed insiders may have bought shares in the last year, but they didn't sell any. The average buy price was around US$10.47. This is nice to see since it implies that insiders might see value around current prices. 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. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of Wolfspeed

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. From our data, it seems that Wolfspeed insiders own 0.8% of the company, worth about US$8.8m. We do generally prefer see higher levels of insider ownership.

So What Does This Data Suggest About Wolfspeed Insiders?

The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Wolfspeed insiders are reasonably well aligned, and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Wolfspeed. To help with this, we've discovered 3 warning signs (1 shouldn't be ignored!) that you ought to be aware of before buying any shares in 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 of direct interests only, but not derivative transactions or indirect interests.

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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.