Entities linked to Carlyle Group (NASDAQ: CG) have recently sold over $2.8 million worth of shares in Complete Solaria, Inc. (NASDAQ: CSLR), a semiconductor company. The sales, which occurred on October 9th and 10th, involved 1,319,331 shares at weighted average prices ranging from $2.06 to $2.36 on October 9 and $2.03 to $2.265 on October 10.
The involved entities include Carlyle Holdings I GP Inc., Carlyle Holdings I GP Sub L.L.C., and others, all part of a complex ownership structure under Carlyle Group. Despite these sales, the entities retain a significant number of shares, indicating ongoing interest in Complete Solaria's performance. The transactions were executed under a Rule 10b5-1 plan, allowing insiders to sell shares without possessing non-public information.
Investors often scrutinize such insider sales for insights into future company performance. The filings were signed by Anne Frederick, representing John C. Redett, who holds key positions within Carlyle Group. Complete Solaria has not commented on these transactions, which are standard disclosures for significant stockholders.
In other developments, Complete Solaria has secured $32.3 million and $52.5 million in Convertible Senior Notes due 2029, aimed at general corporate purposes and acquiring assets from SunPower Corporation. This acquisition is pending Bankruptcy Court approval and is expected to enhance Complete Solaria's operational capacity in the solar sector.
Financially, the company has reduced its long-term debt by $67.6 million, freeing up $18 million in working capital. However, it reported a revenue decline from $20.7 million to $10 million, while maintaining a gross margin of 24%, with expectations of improvement to over 30% in the next quarter. Leadership changes include the appointment of Aaron Semliatschenko as Vice President of U.S. Operations and a shift in auditors from Deloitte & Touche LLP to BDO USA, P.C. due to internal control issues.
Despite a market capitalization of $148.86 million, Complete Solaria faces financial challenges, including a reported operating income of -$44.17 million over the last twelve months. While the stock has shown strong returns—40.99% over the last three months and 345.1% over six months—concerns about cash flow and high volatility persist, indicating potential uncertainty about the company's future.
