Michael Gravelle, general counsel at Foley Trasimene Acquisition Corp (WPF), recently bought 10,000 shares. The buy represents an initial purchase by the holder. The total cost came to $99,800.
The buy occurred on the same day that William Foley, a major owner, also bought 100,000 shares, at a cost of $999,000. The company CEO also bought 10,000 shares at the same time. One fund with a major stake in the company has been a seller of shares since the company went public.
The company is another SPAC, or special purpose acquisition company. SPACs go public and sell shares at $10 each, which is then held on the company’s books as cash and treasuries until a deal is made to buy a company and take it public with a merger.
Foley is looking to buy Alight Solutions, a provider of data analytics, AI, and business solutions.
Action to take: With $10 per share in cash on the books and shares trading just under $10, the company looks like a slight value play. That’s especially true as SPAC companies ran up at the start of the year amid speculation on these firms.
Shares look interesting here, especially as the data analytics company likely offers high growth and high profit margins in a growing niche of the market.
Traders may even consider the November $10 options. This at-the-money trade currently goes for about $1.40, but following a closed deal, shares could take off. Given the current mood of the SPAC universe, traders may want to stick with the shares and look elsewhere for a better options trade.
Disclosure: The author of this article has no position in the company mentioned here, but may make a trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.