Wolfspeed (NYSE:WOLF) Stock Jumps 12% - Time to Buy?

Key Points

• Wolfspeed shares jumped about 12% to roughly $22.80, despite trading volume running 66% below its average.
• Quarterly revenue of $155 million beat estimates, but the company’s adjusted loss of $2.03 per share was worse than expected; revenue fell 21.2% year over year.
• A conditional $1.5 billion U.S. Department of War loan commitment and new silicon-carbide technology offer potential catalysts. Analysts remain cautious, with a consensus “Hold” rating and a $22.67 price target.

Wolfspeed, Inc. (NYSE:WOLF - Get Free Report) shares rose 12% during trading on Friday. The company traded as high as $22.81 and last traded at $22.7980. 1,436,814 shares were traded during trading, a decline of 66% from the average daily volume of 4,254,078 shares. The stock had previously closed at $20.36.

More Wolfspeed News

Here are the key news stories impacting Wolfspeed this week:

• Positive Sentiment: Wolfspeed announced a conditional $1.5 billion U.S. Department of War loan commitment intended to advance the domestic wide-bandgap semiconductor supply chain. The funding could support the company’s operations and strategic investments, though it remains conditional. Wolfspeed Reports Financial Results for the First Quarter of Fiscal 2027
• Positive Sentiment: The company commercially introduced transparent silicon-carbide technology aimed at augmented-reality and quantum-computing applications, potentially opening up longer-term growth opportunities. Wolfspeed commercially introduces transparent SiC technology
• Neutral Sentiment: Quarterly revenue of $155 million exceeded analysts’ $149.86 million estimate. Wolfspeed also expanded an existing silicon-carbide wafer supply agreement with Infineon to include 200mm wafers and announced a multiyear device-supply agreement. Wolfspeed Reports Financial Results for the First Quarter of Fiscal 2027
• Negative Sentiment: Wolfspeed reported an adjusted loss of $2.03 per share, slightly worse than the $1.99 loss analysts expected. Revenue fell 21.2% year over year, and the loss widened from $0.55 per share in the year-ago quarter—signs that the business still faces substantial challenges. Wolfspeed Shares Slide After Q1 Earnings Print
• Negative Sentiment: TD Cowen cut its price target from $25 to $23 and maintained a “hold” rating, signaling limited expected upside at the time of its assessment. Wolfspeed Given New $23 Price Target at TD Cowen

Analyst Upgrades and Downgrades

Several research analysts recently issued reports on the company. TD Cowen cut their target price on Wolfspeed from $25.00 to $23.00 and set a "hold" rating on the stock in a research report on Thursday. Zacks Research raised Wolfspeed to a "hold" rating in a research report on Friday, September 25th. Susquehanna dropped their price objective on Wolfspeed from $30.00 to $25.00 and set a "neutral" rating on the stock in a research note on Wednesday, October 21st. Weiss Ratings lowered shares of Wolfspeed from a "sell (d+)" rating to a "sell (d)" rating in a research note on Friday, October 23rd. Finally, Wall Street Zen lowered shares of Wolfspeed from a "sell" rating to a "strong sell" rating in a research report on Saturday, September 19th. One investment analyst has rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus price target of $22.67.

Wolfspeed Trading Up 12.9%

The company's fifty day moving average is $26.35 and its 200 day moving average is $30.17. The company has a market capitalization of $1.22 billion, a P/E ratio of -1.59 and a beta of 8.67.

Wolfspeed (NYSE:WOLF - Get Free Report) last posted its earnings results on Wednesday, November 4th. The company reported ($2.03) earnings per share for the quarter, missing analysts' consensus estimates of ($1.99) by ($0.04). The company had revenue of $155.00 million for the quarter, compared to analyst estimates of $149.86 million. During the same quarter in the previous year, the business earned ($0.55) earnings per share. The company's revenue for the quarter was down 21.2% compared to the same quarter last year. Equities research analysts predict that Wolfspeed, Inc. will post -8.27 EPS for the current year.

Institutional Investors Weigh In On Wolfspeed

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Penn Capital Management Company LLC increased its position in shares of Wolfspeed by 12.4% during the 3rd quarter. Penn Capital Management Company LLC now owns 577,475 shares of the company's stock valued at $16,270,000 after purchasing an additional 63,500 shares during the last quarter. CenterBook Partners LP purchased a new position in shares of Wolfspeed in the third quarter worth approximately $2,990,000. Prescott Group Capital Management L.L.C. purchased a new position in shares of Wolfspeed in the third quarter worth approximately $3,094,000. Brooklands Fund Management Ltd purchased a new position in shares of Wolfspeed in the third quarter worth approximately $25,376,000. Finally, Apollon Wealth Management LLC bought a new stake in shares of Wolfspeed during the 3rd quarter valued at $246,000.

About Wolfspeed

Wolfspeed, Inc is a semiconductor company focused on silicon carbide (SiC) technologies. Its products are designed to support the conversion and management of electrical power in applications that require high efficiency, high voltage, and operation at elevated temperatures.

The company develops and manufactures SiC power devices, including metal-oxide-semiconductor field-effect transistors, diodes, power modules, and related components. It also produces SiC materials such as wafers and epitaxial substrates used by semiconductor manufacturers.

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