Wolfspeed (NYSE:WOLF) Shares Climb 4.5% - What's Next?

Key Points

• Wolfspeed shares rose 4.5% to about $27.49, although trading volume was roughly 88% below the stock’s average daily volume.
• Analysts remain cautious, with a consensus “Hold” rating and $25 price target; Susquehanna cut its target to $30, while TD Cowen maintained a $25 target.
• The company beat quarterly EPS expectations, reporting a loss of $2.26 per share versus estimates of $2.45, but revenue fell 24.1% year over year to $149.6 million.

Wolfspeed, Inc. (NYSE:WOLF - Get Free Report) rose 4.5% during trading on Friday. The stock traded as high as $27.46 and last traded at $27.4870. Approximately 526,773 shares traded hands during trading, a decline of 88% from the average daily volume of 4,228,840 shares. The stock had previously closed at $26.30.

Analysts Set New Price Targets

A number of equities research analysts recently issued reports on the stock. Weiss Ratings raised shares of Wolfspeed from a "sell (d-)" rating to a "sell (d)" rating in a report on Monday, August 24th. Wall Street Zen downgraded shares of Wolfspeed from a "sell" rating to a "strong sell" rating in a research note on Saturday, September 19th. Susquehanna decreased their target price on shares of Wolfspeed from $40.00 to $30.00 and set a "neutral" rating on the stock in a report on Tuesday, July 21st. Finally, TD Cowen reissued a "hold" rating and issued a $25.00 price target on shares of Wolfspeed in a research note on Thursday, August 20th. One investment analyst has rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus price target of $25.00.

Wolfspeed Stock Performance

The company has a 50 day moving average price of $27.04 and a 200 day moving average price of $34.18. The firm has a market cap of $1.47 billion and a price-to-earnings ratio of -1.75.

Wolfspeed (NYSE:WOLF - Get Free Report) last issued its quarterly earnings data on Wednesday, August 19th. The company reported ($2.26) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($2.45) by $0.19. The business had revenue of $149.60 million for the quarter, compared to analyst estimates of $150.00 million. During the same period in the previous year, the business posted ($0.77) earnings per share. The firm's revenue for the quarter was down 24.1% compared to the same quarter last year.

Hedge Funds Weigh In On Wolfspeed

Hedge funds have recently made changes to their positions in the stock. Royal Bank of Canada purchased a new stake in Wolfspeed in the first quarter valued at approximately $89,000. FNY Investment Advisers LLC acquired a new stake in shares of Wolfspeed in the second quarter valued at $204,000. AXQ Capital LP acquired a new stake in shares of Wolfspeed in the second quarter valued at $208,000. Concurrent Investment Advisors LLC purchased a new stake in shares of Wolfspeed in the 2nd quarter valued at $229,000. Finally, WINTON GROUP Ltd purchased a new stake in shares of Wolfspeed in the 2nd quarter valued at $299,000.

About Wolfspeed

Wolfspeed, Inc is a semiconductor company focused on silicon carbide and gallium nitride technologies. The company develops and manufactures power semiconductors, materials and related components designed to improve energy efficiency and performance in high-power electrical systems.

Its product portfolio includes silicon carbide materials, discrete power devices, power modules and radio-frequency products. These products serve applications such as electric vehicles, charging infrastructure, renewable energy systems, industrial equipment, telecommunications, aerospace and defense.

Wolfspeed was formerly known as Cree, Inc, which was founded in 1987.

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