Insider: more buying as SpaceX firm trades near 17-year high

Filtronic (LSE:FTC) shares worth £100,000 have been bought by its chief executive in the week that his long-serving finance boss reaped the benefit of a stunning run for the AIM 20-bagger.

Michael Tyerman generated £377,000 by selling Filtronic shares at 112.1p, having seen the radio frequency communications business surge in value thanks to a five-year strategic partnership to supply SpaceX’s Starlink satellite internet platform.

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The finance chief, who joined the company in 2007 and has been in his current role since 2016, retains a significant interest through 400,000 shares equivalent to a 0.18% stake.

A day before his dealings, chief executive Nat Edington bought shares in the County Durham-based company for the first time since he joined in May 2024. His purchase took place at a price of 114.4p.

He made his investment a week after Filtronic announced a deepening of its collaboration with Elon Musk’s SpaceX, having signed the initial agreement in April 2024.

Filtronic said it will increase its supply of advanced E-band SSPA modules to support the ongoing deployment of SpaceX's Starlink constellation, which provides high-speed, low-latency internet to users worldwide.

The company, which has over 45 years’ experience in the radio frequency market, said the latest agreement showed SpaceX's continued confidence in its technology and engineering expertise.

Warrants at an exercise price of 92.8p will enable SpaceX to subscribe for up to another 5% of the company's shares. These are expected to vest, on a variable basis, based on the receipt of irrevocable purchase orders.

Edington said the new agreement gave Filtronic greater visibility and confidence that it is trading marginally ahead of market expectations for the financial year ending 31 May 2026. This follows a series of recent upgrades to guidance.

He added: “This continues to be an exciting time for the business, and we look forward to continuing our relationship with SpaceX."

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At the current share price, the company’s valuation now tops £245 million, still a far cry from the £1.5 billion of the 2000 dotcom boom but more than 20 times higher than five years ago when shares were 5p. The stock hit 119p at the beginning of March, the highest it’s been since May 2008.

The low earth orbit (LEO) space market has grown rapidly as the costs associated with the launch and deployment of satellite technology continues to dramatically reduce.

Private corporations like SpaceX, together with established global aerospace contractors and regional start-up companies, are racing to build constellations of satellites that will accelerate the delivery of internet and ‘direct to cell’ services across the globe.

SpaceX contributed 48% of Filtronic’s revenue in the May 2024 financial year, with the company’s three largest customers representing 84% of turnover compared with 73% in 2023.

Given this concentration, Filtronic said in the 2024 annual report that it expected a rebalancing over time as the low earth orbit sector develops and it wins business in other markets.

Edison analysts said recently that the visibility provided by the close working relationship with SpaceX and the conversion of recent design wins in the aerospace and defence market into orders could provide further support for its 2026 forecasts.

Backing continuation of uptrend

A £63,000 swoop for Wickes Group (LSE:WIX) shares has been made by the DIY chain’s board chair at a price 28% higher than a previous investment two years ago.

Former Whitbread finance director Christopher Rogers disclosed two purchases last week at 175p, having seen the FTSE All-Share company rally by 15% so far this year.

Broker Peel Hunt recently said the shares have further to go after rolling forward its price target to 210p, pointing out that the company’s strategy continues to deliver volume and share growth in a “market offering no favours”.

It added: “The group remains a coiled spring, ready to capitalise on better market volumes with significant operational gearing and strong cash conversion.”

Shore Capital added after recent results that Wickes’ valuation multiples were undemanding for the sector, particularly if the company is able to successfully return to revenue growth.

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Adjusted profits fell 16% to £43.6 million in 2024 after an underlying sales decline of 13.9% in the project-based Design & Installation arm offset Retail revenue growth of 1.9%.

In last week’s annual report, Rogers said the company believed a “relentless focus” on costs and investment in growth levers will enable Wickes to continue market outperformance at a time when trading conditions remain tough.

Wickes points to the high average age of the UK’s housing stock, the rising number of UK households and energy efficiency as among reasons to be positive about prospects.

The company, which trades with a 6.1% dividend yield, is due to pay shareholders 7.3p a share on 6 June for an unchanged total of 10.9p in relation to 2024.