Wolfspeed, Inc. (NYSE:WOLF) Stock Has Consensus Target Price of $25.00

Key Points

• Wolfspeed has a consensus “Hold” rating from five analysts, with one sell, three hold, and one buy rating. The average 12-month price target is $25.00, below the reported opening price of $30.83.
• The company reported a quarterly loss of $2.26 per share, though it beat estimates of a $2.45 loss; revenue of $149.6 million declined 24.1% year over year, highlighting ongoing operating challenges.
• Wolfspeed received a conditional commitment for up to $1.5 billion in 30-year financing to support domestic silicon carbide and gallium nitride production, but the agreement could dilute shareholders through warrants representing up to 7.5% of fully diluted equity.

Shares of Wolfspeed, Inc. (NYSE:WOLF - Get Free Report) have been assigned a consensus rating of "Hold" from the five brokerages that are presently covering the firm, MarketBeat reports. One research analyst has rated the stock with a sell rating, three have given a hold rating and one has issued a buy rating on the company. The average 1-year target price among brokerages that have issued ratings on the stock in the last year is $25.00.

A number of brokerages recently commented on WOLF. Wall Street Zen downgraded shares of Wolfspeed from a "sell" rating to a "strong sell" rating in a report on Saturday, September 19th. Zacks Research upgraded Wolfspeed to a "hold" rating in a research report on Friday, September 25th. Weiss Ratings raised Wolfspeed from a "sell (d-)" rating to a "sell (d)" rating in a research note on Monday, August 24th. TD Cowen reiterated a "hold" rating and issued a $25.00 target price on shares of Wolfspeed in a report on Thursday, August 20th. Finally, Susquehanna cut their target price on Wolfspeed from $40.00 to $30.00 and set a "neutral" rating on the stock in a research report on Tuesday, July 21st.

Wolfspeed Stock Down 1.7%

Wolfspeed stock opened at $30.83 on Friday. The company has a market cap of $1.63 billion and a price-to-earnings ratio of -1.96. The firm's fifty day moving average is $27.97 and its 200 day moving average is $35.11. Wolfspeed has a 52-week low of $13.48 and a 52-week high of $80.82.

Wolfspeed (NYSE:WOLF - Get Free Report) last issued its quarterly earnings data on Wednesday, August 19th. The company reported ($2.26) EPS for the quarter, topping analysts' consensus estimates of ($2.45) by $0.19. The business had revenue of $149.60 million during the quarter, compared to analysts' expectations of $150.00 million. During the same period in the previous year, the business earned ($0.77) earnings per share. The business's quarterly revenue was down 24.1% on a year-over-year basis. On average, equities research analysts anticipate that Wolfspeed will post -8.27 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the company. Renesas Electronics America Inc. bought a new stake in shares of Wolfspeed in the 2nd quarter worth about $813,126,949. Shah Capital Management raised its position in Wolfspeed by 1,419.5% in the 1st quarter. Shah Capital Management now owns 508,948 shares of the company's stock worth $8,306,000 after purchasing an additional 475,454 shares during the period. Panview Capital Ltd purchased a new stake in Wolfspeed in the 2nd quarter worth about $6,952,000. Readystate Asset Management LP purchased a new stake in Wolfspeed in the 2nd quarter worth about $6,841,000. Finally, SG Americas Securities LLC bought a new stake in Wolfspeed in the first quarter worth about $6,671,000.

Key Wolfspeed News

Here are the key news stories impacting Wolfspeed this week:

• Positive Sentiment: The U.S. Department of War, through its Office of Strategic Capital, conditionally committed up to $1.5 billion in 30-year financing to support Wolfspeed’s domestic production of silicon carbide (SiC) materials and wide-bandgap power devices, including applications tied to U.S. national security. The announcement triggered a sharp rally in the shares and provided the company with a potential source of long-term capital. Wolfspeed Announces Conditional 30-Year, $1.5 Billion Loan Commitment
• Positive Sentiment: The financing is expected to bolster Wolfspeed’s ability to expand U.S. manufacturing and research and development in SiC and gallium nitride (GaN), potentially strengthening its position in power semiconductors and reducing pressure from its capital-intensive expansion plans. Wolfspeed Receives $1.5 Billion Conditional Loan Commitment
• Neutral Sentiment: The agreement would give the federal government warrants to purchase as much as 7.5% of Wolfspeed’s fully diluted equity. While the warrants help secure government support, they could dilute existing shareholders if exercised. The loan is also subject to conditions and is not yet equivalent to fully funded cash. Wolfspeed Loan Commitment and Potential Federal Stake
• Negative Sentiment: Investors continue to face significant execution and financial risks. Wolfspeed recently reported a substantial quarterly loss, while revenue declined year over year; separate coverage also highlighted losses associated with a wafer launch. The new financing improves liquidity prospects but does not by itself resolve the company’s operating losses or production challenges. Wolfspeed Stock Fell as Wafer Launch Met Losses

About Wolfspeed

Wolfspeed, Inc NYSE: WOLF develops and manufactures semiconductor technologies based primarily on silicon carbide, a wide-bandgap material designed to support efficient power conversion and high-temperature operation. Its products are used in applications where reduced energy loss, higher power density and improved thermal performance are important.

The company's offerings include silicon carbide wafers and materials, power modules, metal-oxide-semiconductor field-effect transistors (MOSFETs), diodes and other power semiconductor devices.

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