Loan Le Duy, a director at Wolfspeed (WOLF), recently bought 1,000 shares. The buy increased his holdings by nearly 5 percent, and came to a total price of just over $75,000.
This follows up on a number of other buys in the past month, including a 4,000 share buy from the President and CEO, and a buy from a director for just over $500,000. Insiders have been buyers for the past year, but have been more mixed over the last three years.
Overall, company insiders own 0.7 percent of the company.
Shares of the semiconductor company are down just over 20 percent in the past year. The company has been reporting a loss in that time, but revenues are up 37 percent as semiconductor demand remains strong.
Action to take: Shares trade at their lowest valuation in two years, making for a potential rebound play here. While the company is a long way from paying a dividend, shares are low-priced enough to be a potential buyout play from a larger company in the semiconductor space in the years ahead.
For traders, the December $95 calls, last going for about $8.50, could potentially see mid-to-high double-digit returns in the months ahead. Shares have started moving higher recently and may have just set 52-week lows.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.