Wolfspeed (NYSE: WOLF) stock posted explosive gains in Friday’s trading. The corporate’s share price ended the day’s trading up 31% and had been up as much as 35.4% earlier within the each day session.
Wolfspeed stock gained ground together with news in regards to the compensation for executive chairman Thomas Werner and filings with the Securities and Exchange Commission (SEC) showing that insiders had recently acquired shares. Along with these catalysts, the corporate’s share price also appears to have benefited from a surge of bullish momentum for meme stocks.
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Earlier this week, Wolfspeed announced that its CEO, Gregg Lowe, could be stepping back from the role this month and in addition departing from the corporate’s board of directors. Along with the announcement, the corporate stated that board chairman Thomas Werner would also step into the manager chairman role because the tech specialist works to pick out its next CEO.
In a filing with the SEC yesterday, details about Werner’s compensation as executive chairman were shared. Werner is scheduled to receive $150,000 in money on a monthly basis along with $250,000 value of restricted stock units. The chief chairman acquired 37,500 shares on Nov. 20.
Along with details about Werner’s pay package and acquisition filing, filings with the SEC also showed that other members of the corporate’s board of directors had acquired significant amounts of stock the identical day. Board member Duy-Loan T. Le acquired 20,000 shares on Nov. 20. Meanwhile, Darren Jackson acquired 36,795 shares, and Stacy Smith acquired 30,376 shares.
With board members moving to accumulate shares and receiving stock as a considerable component of their compensation packages, investors are seeing signs that company insiders are bullish on Wolfspeed’s future. As famous investor Peter Lynch once said, “Insiders might sell their shares for any variety of reasons, but they buy them for under one: They think the worth will rise.” Recent share acquisitions by board members are a positive indicator for the shareholder base at large.
Alternatively, Wolfspeed’s explosive stock growth also appears to have been aided by a broader rally for meme stocks. Even after today’s big pop, the corporate’s share price continues to be down 81% 12 months thus far. While the stock could proceed to enjoy a comeback rally within the near term, there hasn’t been any news in regards to the core business to propel the recent rally — and that opens the door for volatile trading if more substantive bullish catalysts aren’t forthcoming.