Insider trades can give investors a more complete view of activity within the world’s publicly-listed companies. No one has more information in relation to a company’s prospects than its executives and directors.
In this report, we are going to highlight some interesting insider buying at Wolfspeed Inc (WOLF:US). Wolfspeed is a global leader in silicon carbide technology. Its products include silicon carbide materials, power-switching devices, and RF devices for applications such as electric vehicles, fast charging inverters, power supplies, telecom, and military and aerospace. The company is listed on the New York Stock Exchange and currently has a market capitalization of approximately $11.29 billion.
Insider Buying at Wolfspeed
Our data shows that between November 1 and November 18, board member Duy-Loan Le purchased 8,000 WOLF shares at an average price of $83.26 per share. This trading activity cost the insider roughly $680,000 and increased her holding to 34,662 shares.
Ms. Le – who joined the board in October 2018 – has over 30 years of experience in the semiconductor space. Previously, she spent 33 years at Texas Instruments, where she held various leadership positions, including Advanced Technology Ramp Manager for the Embedded Processing Division and worldwide project manager for the Memory Division. This background means she is likely to have an excellent understanding of Wolfspeed’s prospects.
It’s worth noting that Ms. Le is not the only insider at Wolfspeed to buy stock recently. Back in May, we highlighted large purchases from President and CEO Gregg Lowe and board member John Replogle. Currently, our Insider Model views insider sentiment at Wolfspeed as very positive.
Wolfspeed’s recent Q3 results showed that the company has momentum at present.
For the quarter, revenue came in at $241.3 million, up 54% year on year. Meanwhile, non-GAAP net loss was just $4.9 million, or $0.04 per diluted share, versus $23.8 million, or $0.21 per diluted share a year earlier. Gross margin increased to 35.6% from 33.5% in Q3 2021.
Looking ahead, management was very confident about the future.
"There is tremendous momentum for Wolfspeed across a growing number of mid and high-powered applications, as evidenced by $3.5 billion of design-ins for the quarter, six times what it was in the prior year period, and an opportunity pipeline that now exceeds $40 billion," said CEO Gregg Lowe.
“The EV opportunity and the growing adoption of Silicon Carbide in the automotive and broader industrial markets creates powerful tailwinds for our next-gen solutions, giving us confidence in our strategy as we prepare to invest further in the business,” he added.
In light of this confidence from the CEO, we see the insider buying here as a bullish indicator.