Wolfspeed (NYSE:WOLF) Shares Gap Up - Here's What Happened

Key Points

• Wolfspeed shares jumped 10%, opening at $27.00 versus a prior close of $25.59 and last trading at $26.86.
• Analyst sentiment remains cautious: the stock has a consensus “Hold” rating and a $25.00 price target, with recent price-target cuts and a “strong sell” downgrade.
• Wolfspeed beat quarterly EPS expectations, reporting a loss of $2.26 per share versus an expected $2.45 loss, but revenue fell 24.1% year over year to $149.6 million.

Shares of Wolfspeed, Inc. (NYSE:WOLF - Get Free Report) gapped up prior to trading on Monday . The stock had previously closed at $25.59, but opened at $27.00. Wolfspeed shares last traded at $26.86, with a volume of 419,621 shares.

Analyst Upgrades and Downgrades

WOLF has been the topic of several research reports. Susquehanna cut their price objective on Wolfspeed from $40.00 to $30.00 and set a "neutral" rating on the stock in a research report on Tuesday, July 21st. Wall Street Zen cut Wolfspeed from a "sell" rating to a "strong sell" rating in a research note on Saturday. Weiss Ratings upgraded Wolfspeed from a "sell (d-)" rating to a "sell (d)" rating in a research report on Monday, August 24th. Finally, TD Cowen reaffirmed a "hold" rating and issued a $25.00 price target on shares of Wolfspeed in a research note on Thursday, August 20th. One 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. According to data from MarketBeat, the company has a consensus rating of "Hold" and a consensus price target of $25.00.

Wolfspeed Stock Up 10.0%

The firm has a market cap of $1.49 billion and a PE ratio of -1.79. The stock's fifty day simple moving average is $27.54 and its two-hundred day simple moving average is $33.96.

Wolfspeed (NYSE:WOLF - Get Free Report) last released its earnings results on Wednesday, August 19th. The company reported ($2.26) earnings per share (EPS) for the quarter, beating the consensus estimate of ($2.45) by $0.19. The business had revenue of $149.60 million for the quarter, compared to analysts' expectations of $150.00 million. During the same quarter in the previous year, the business posted ($0.77) earnings per share. Wolfspeed's revenue for the quarter was down 24.1% on a year-over-year basis.

Institutional Investors Weigh In On Wolfspeed

Several hedge funds have recently added to or reduced their stakes in WOLF. FNY Investment Advisers LLC bought a new position in shares of Wolfspeed during the second quarter valued at $204,000. AXQ Capital LP bought a new position in Wolfspeed in the 2nd quarter worth about $208,000. Concurrent Investment Advisors LLC bought a new position in Wolfspeed in the 2nd quarter worth about $229,000. Royal Bank of Canada purchased a new stake in Wolfspeed during the 1st quarter valued at about $89,000. Finally, WINTON GROUP Ltd purchased a new stake in Wolfspeed during the 2nd quarter valued at about $299,000.

Wolfspeed Company Profile

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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