Insider Trading June 9, 2026 09:34 PM

Netlist CEO Hong Chun K Sells $108,752 in Company Stock Amid Recent Financial Growth

Executive transaction coincides with strong Q1 2026 results and significant stock appreciation over the past year.

By Hana Yamamoto
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Hong Chun K, President, CEO, and Chairman of Netlist Inc. (NASDAQ: NLST), executed a sale of 40,000 shares in early June 2026, totaling $108,752. This transaction follows a substantial acquisition of restricted stock units (RSUs) and occurs amidst the company reporting a 262% year-over-year revenue increase in the first quarter of 2026. Despite recent positive financial metrics, the stock has experienced short-term volatility, with a notable decline in the week preceding the sale.

Netlist CEO Hong Chun K Sells $108,752 in Company Stock Amid Recent Financial Growth
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Key Points

  • Netlist CEO Hong Chun K sold 40,000 shares for $108,752 on June 8, 2026, with a weighted average price of $2.7188.
  • The company reported a 262% year-over-year revenue increase to $104.9 million in Q1 2026, surpassing EPS expectations.
  • The stock has risen 253% over the last year but declined 18.8% in the week preceding the CEO's sale.

Hong Chun K, serving as the President, Chief Executive Officer, and Chairman of Netlist Inc. (NASDAQ: NLST), has executed a significant transaction involving the company's equity. On June 8, 2026, Mr. Hong sold 40,000 shares of Netlist's common stock. The total value derived from this sale was $108,752. The execution of these sales occurred at varying price points, ranging between $2.51 and $2.81 per share. The weighted average price for the transaction was recorded at $2.7188 per share.

This sale activity takes place against a backdrop of recent stock price movement. Over the seven days preceding the transaction, the stock price declined by 18.8%. However, this short-term drop contrasts sharply with the stock's performance over a longer horizon. Shares of Netlist have appreciated by 253% over the last year. According to analysis provided by InvestingPro, the stock currently trades at a valuation slightly above its calculated Fair Value. This metric places the equity on a list categorized as Most Overvalued.

Separately, prior to the sale, Mr. Hong engaged in an acquisition of company shares. On June 5, 2026, he acquired 856,500 shares of common stock at a price of $0.00 per share. These specific shares are tied to restricted stock units (RSUs) that are subject to a four-year vesting schedule. The vesting structure dictates that one-quarter of the shares will vest on each anniversary of June 9, 2026. Delivery of these shares to Mr. Hong is contingent upon the vesting of the corresponding RSUs.

Following the execution of these transactions, Mr. Hong's direct ownership in Netlist Inc. stands at 8,676,887 shares of common stock. This total includes shares associated with unvested RSUs. Additionally, Mr. Hong maintains an indirect holding of 3,511,177 shares through the Hong-Cha Property Trust.

The details of these transactions were formally disclosed in a Form 4 filing submitted to the Securities and Exchange Commission on June 9, 2026. Investors seeking further insights into Netlist's valuation and executive compensation trends may access a comprehensive Pro Research Report. This resource is available for Netlist and over 1,400 other US equities.

In the broader context of corporate performance, Netlist Inc. reported a substantial increase in revenue for the first quarter of 2026. Revenue reached $104.9 million, representing a 262% growth compared to the same period in the previous year. The company also reported an earnings per share (EPS) of $0.03. This figure surpassed analyst expectations, which had predicted an EPS of -$0.01.

Despite these positive financial results, the stock experienced a decline in pre-market trading following the earnings announcement. The stock closed at $3.282 after the earnings report. These developments highlight the company's strong financial performance in the latest quarter, even as the stock faces short-term volatility.

Risks

  • The stock trades slightly above its Fair Value, placing it on a Most Overvalued list according to InvestingPro analysis.
  • The stock experienced an 18.8% decline in the week prior to the CEO's sale, indicating short-term volatility.
  • The stock declined in pre-market trading following the Q1 2026 earnings announcement despite positive financial results.

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