Insider trades can give investors a more complete view of activity within the world’s publicly-listed companies. No one has more knowledge of a company, and its prospects, than its executives and directors.
In this report, we are going to highlight some interesting insider buying at Soitec (SOI:FP). Soitec is a European manufacturer of semiconductor materials. With more than 3,500 patents worldwide, its strategy is based on disruptive innovation to meet its customers’ needs for high performance, energy efficiency, and cost competitiveness. The company is listed on the Euronext Paris stock exchange and currently has a market capitalization of €5.4 billion.
Soitec: Insider Buying
Our data shows that on January 27, board member Laurence Delpy purchased 500 SOI shares at a price of €162.30 per share. This trade cost the insider €81,150 and increased her holding to 650 shares.
First Insider Buy Since 2019
This trade is worth highlighting for a couple of reasons. Firstly, insider purchases at Soitec are quite rare. Our data shows that this is the first buy from an insider since December 2019.
Secondly, this trade has increased the size of Ms. Delpy’s position by 333%. The fact that the insider has boosted her holding by such a large percentage indicates that she is very confident the stock is set to move higher.
New CEO Appointed
Shares in Soitec recently plunged after the semiconductor company's board said Pierre Barnabé from Atos will succeed Paul Boudre as CEO. Mr. Boudre has served as CEO of Soitec for the last 15 years and had great success while in the position. Following the announcement, the executive committee sent a letter to the board of directors, inquiring about the choice of the new CEO, according to French media Les Echos.
In a press release, the board responded by stating that the appointment of Mr. Barnabé was the result of “rigorous decision-making process based on a detailed assessment of the company’s needs for its next phase of development.” The board added that Pierre Barnabé has the “necessary skills and experience” to lead Soitec as CEO for the next phase of growth.
The purchase of stock from Ms. Delpy suggests that she is confident in the new CEO and that she expects the stock to bounce back. We see this insider purchase as a bullish indicator.