Wolfspeed (NYSE:WOLF) Shares Up 5.8% - Should You Buy?

Key Points

• Wolfspeed shares rose 5.8% to about $26.63, although trading volume was 94% below the average session volume.
• Analyst sentiment remains cautious: the stock has a consensus “Hold” rating and a $25 price target, below its recent trading price.
• Wolfspeed exceeded quarterly EPS expectations with a loss of $2.26 per share versus the forecasted $2.45 loss, but revenue fell 24.1% year over year to $149.6 million.

Shares of Wolfspeed, Inc. (NYSE:WOLF - Get Free Report) were up 5.8% during trading on Friday . The company traded as high as $27.17 and last traded at $26.6270. 244,213 shares were traded during mid-day trading, a decline of 94% from the average session volume of 4,337,603 shares. The stock had previously closed at $25.17.

Analyst Upgrades and Downgrades

WOLF has been the topic of several recent research reports. Wall Street Zen upgraded shares of Wolfspeed from a "strong sell" rating to a "sell" rating in a research report on Saturday, August 22nd. TD Cowen reaffirmed a "hold" rating and set a $25.00 target price on shares of Wolfspeed in a research report on Thursday, August 20th. Weiss Ratings raised Wolfspeed from a "sell (d-)" rating to a "sell (d)" rating in a research note on Monday, August 24th. Finally, Susquehanna lowered their price objective on Wolfspeed from $40.00 to $30.00 and set a "neutral" rating for the company in a research report on Tuesday, July 21st. One analyst has rated the stock with a Buy rating, three have given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus price target of $25.00.

Wolfspeed Stock Up 4.7%

The company has a 50-day moving average price of $29.08 and a two-hundred day moving average price of $33.77. The company has a market capitalization of $1.40 billion and a PE ratio of -1.68.

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

Institutional Investors Weigh In On Wolfspeed

Several institutional investors and hedge funds have recently modified their holdings of the stock. Renesas Electronics America Inc. purchased a new position in shares of Wolfspeed during the second quarter valued at about $813,126,949. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its holdings in shares of Wolfspeed by 94.3% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 1,868,741 shares of the company's stock worth $5,718,000 after acquiring an additional 906,968 shares during the period. California State Teachers Retirement System purchased a new position in shares of Wolfspeed during the 2nd quarter worth approximately $72,081,000. Goldman Sachs Group Inc. raised its position in shares of Wolfspeed by 176.7% in the 1st quarter. Goldman Sachs Group Inc. now owns 1,380,499 shares of the company's stock worth $4,224,000 after acquiring an additional 881,603 shares in the last quarter. Finally, Hudson Bay Capital Management LP purchased a new position in shares of Wolfspeed in the 4th quarter valued at approximately $12,187,000.

Wolfspeed Company Profile

Wolfspeed, Inc NYSE: WOLF is a leading developer and manufacturer of silicon carbide (SiC) and gallium nitride (GaN) semiconductor materials and devices. The company's product portfolio addresses high-growth markets such as electric vehicles, renewable energy, fast-charging infrastructure, aerospace and defense, and telecommunications. By leveraging proprietary materials and device designs, Wolfspeed delivers solutions that offer improved energy efficiency, higher power density and greater thermal performance compared to conventional silicon-based semiconductors.

Founded as part of Cree, Inc and spun off to form an independent public company in October 2021, Wolfspeed traces its roots to the mid-1980s when it pioneered the commercial use of wide-bandgap semiconductor technology.

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