Wolfspeed (NYSE:WOLF) Shares Up 22.9% – Should You Buy?

Wolfspeed, Inc. (NYSE:WOLF)’s stock price traded up 22.9% during mid-day trading on Friday . The company traded as high as $4.40 and last traded at $4.43. 13,693,560 shares traded hands during trading, a decline of 42% from the average session volume of 23,606,934 shares. The stock had previously closed at $3.60.

Analyst Ratings Changes

WOLF has been the topic of several research analyst reports. Piper Sandler cut their price target on Wolfspeed from $18.00 to $10.00 and set an “overweight” rating on the stock in a research report on Thursday, January 30th. Canaccord Genuity Group dropped their price objective on shares of Wolfspeed from $18.00 to $10.00 and set a “buy” rating on the stock in a research note on Thursday, January 30th. Bank of America decreased their target price on shares of Wolfspeed from $9.50 to $6.00 and set an “underperform” rating for the company in a research note on Thursday, January 30th. StockNews.com upgraded Wolfspeed to a “sell” rating in a research report on Monday, January 6th. Finally, Susquehanna decreased their price objective on Wolfspeed from $11.00 to $7.00 and set a “neutral” rating for the company in a research report on Wednesday, January 22nd. Three analysts have rated the stock with a sell rating, seven have given a hold rating and four have assigned a buy rating to the company’s stock. Based on data from MarketBeat.com, Wolfspeed presently has a consensus rating of “Hold” and an average target price of $12.17.

Wolfspeed Stock Performance

The firm has a fifty day moving average of $4.04 and a 200-day moving average of $6.87. The company has a quick ratio of 2.47, a current ratio of 3.15 and a debt-to-equity ratio of 17.26. The stock has a market capitalization of $572.15 million, a price-to-earnings ratio of -0.58 and a beta of 1.69.

Wolfspeed (NYSE:WOLF) last released its quarterly earnings data on Wednesday, January 29th. The company reported ($1.10) EPS for the quarter, missing the consensus estimate of ($0.90) by ($0.20). Wolfspeed had a negative return on equity of 70.84% and a negative net margin of 125.96%. As a group, sell-side analysts anticipate that Wolfspeed, Inc. will post -4 EPS for the current year.

Insider Buying and Selling at Wolfspeed

In related news, CFO Neill Reynolds sold 13,909 shares of Wolfspeed stock in a transaction dated Monday, April 28th. The stock was sold at an average price of $3.99, for a total transaction of $55,496.91. Following the completion of the sale, the chief financial officer now owns 195,257 shares in the company, valued at approximately $779,075.43. This trade represents a 6.65 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Insiders own 0.84% of the company’s stock.

Institutional Investors Weigh In On Wolfspeed

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Allworth Financial LP grew its stake in Wolfspeed by 38.1% in the 4th quarter. Allworth Financial LP now owns 7,060 shares of the company’s stock worth $44,000 after acquiring an additional 1,949 shares during the period. Sterling Capital Management LLC grew its position in shares of Wolfspeed by 51.4% in the fourth quarter. Sterling Capital Management LLC now owns 7,463 shares of the company’s stock valued at $50,000 after purchasing an additional 2,533 shares during the period. Ground Swell Capital LLC increased its stake in Wolfspeed by 25.6% in the fourth quarter. Ground Swell Capital LLC now owns 12,827 shares of the company’s stock valued at $85,000 after purchasing an additional 2,611 shares during the last quarter. KBC Group NV lifted its position in Wolfspeed by 76.5% during the fourth quarter. KBC Group NV now owns 6,064 shares of the company’s stock worth $40,000 after buying an additional 2,629 shares during the period. Finally, Steward Partners Investment Advisory LLC boosted its stake in Wolfspeed by 192.0% in the 4th quarter. Steward Partners Investment Advisory LLC now owns 4,429 shares of the company’s stock worth $29,000 after buying an additional 2,912 shares during the last quarter.

About Wolfspeed

Wolfspeed, Inc operates as a powerhouse semiconductor company focuses on silicon carbide and gallium nitride (GaN) technologies in Europe, Hong Kong, China, rest of Asia-Pacific, the United States, and internationally. It offers silicon carbide and GaN materials, including silicon carbide bare wafers, epitaxial wafers, and GaN epitaxial layers on silicon carbide wafers to manufacture products for RF, power, and other applications.