Wolf speed (NYSE: WOLF) Stock prices are rising in Monday’s trading. The company’s stock price was up 10% as of 2:30 PM ET and had risen as much as 18.5% earlier in the daily session.
Wolfspeed stock is gaining today on a filing showing it has filed for a mixed securities shelf. The company’s stock price is also likely to get a boost from recent filings with the Securities and Exchange Commission (SEC), which show that insiders have continued to acquire shares. Despite the current surge, Wolfpseed stock is still down about 76% so far this year.
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A filing today with the SEC revealed that Wolfspeed had moved forward with an automatic securities registration statement. This move gives the company the flexibility to issue new shares at any time over a three-year period without the need for additional registrations. As the company attempts to turn around and refocus its business on profitable silicon carbide products, the push to raise new funds is a favorable indicator, even though the issuance of new shares will have a dilutive impact on existing shareholders.
Wolfspeed’s recent mixed stock record looks better in the context of its recent insider stock acquisitions. If company insiders dumped their shares ahead of potential new stock offerings, that could indicate they wanted to make money before the effects of stock dilution hit.
Instead, board members and company officers continue to receive compensation in the form of stock. And so far they have no plans to sell their shares. The mixed securities offering and insider share moves don’t necessarily mean the company’s turnaround will be successful, but it’s still encouraging to see Wolfspeed’s leaders increasingly have a say.
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