Wolfspeed (NYSE:WOLF) Stock Price Up 4.9% - Time to Buy?

Key Points

• Wolfspeed shares rose 4.9% to about $29.52, although trading volume was 81% below the average. The stock remains below its 200-day moving average of $34.48.
• Analyst sentiment is mixed, with one Buy, three Hold, and one Sell rating. The consensus rating is Hold, with a $25 average price target—below the current share price.
• Wolfspeed beat quarterly EPS expectations with a loss of $2.26 per share versus the anticipated $2.45 loss, but revenue fell 24.1% year over year to $149.6 million. Analysts expect a full-year loss of approximately $8.27 per share.

Shares of Wolfspeed, Inc. (NYSE:WOLF - Get Free Report) shot up 4.9% during mid-day trading on Thursday. The company traded as high as $29.75 and last traded at $29.5170. Approximately 814,562 shares were traded during mid-day trading, a decline of 81% from the average daily volume of 4,188,622 shares. The stock had previously closed at $28.13.

Wall Street Analysts Forecast Growth

A number of research firms recently commented on WOLF. Zacks Research upgraded shares of Wolfspeed to a "hold" rating in a research note on Friday, September 25th. Weiss Ratings raised shares of Wolfspeed from a "sell (d-)" rating to a "sell (d)" rating in a report on Monday, August 24th. TD Cowen restated a "hold" rating and set a $25.00 price objective on shares of Wolfspeed in a research report on Thursday, August 20th. Wall Street Zen cut shares of Wolfspeed from a "sell" rating to a "strong sell" rating in a research note on Saturday, September 19th. Finally, Susquehanna dropped 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. One investment analyst has rated the stock with a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of "Hold" and a consensus target price of $25.00.

Wolfspeed Stock Up 6.5%

The stock has a market capitalization of $1.59 billion and a price-to-earnings ratio of -1.91. The firm has a 50-day moving average of $26.87 and a two-hundred day moving average of $34.48.

Wolfspeed (NYSE:WOLF - Get Free Report) last released its quarterly earnings data on Wednesday, August 19th. The company reported ($2.26) earnings per share for the quarter, beating the consensus estimate of ($2.45) by $0.19. The company had revenue of $149.60 million during the quarter, compared to analyst estimates of $150.00 million. During the same quarter in the prior year, the company posted ($0.77) EPS. The firm's quarterly revenue was down 24.1% compared to the same quarter last year. As a group, sell-side analysts predict that Wolfspeed, Inc. will post -8.27 EPS for the current year.

Institutional Investors Weigh In On Wolfspeed

Several institutional investors and hedge funds have recently modified their holdings of WOLF. Renesas Electronics America Inc. bought a new stake in shares of Wolfspeed during the 2nd quarter worth about $813,126,949. Shah Capital Management grew its holdings in shares of Wolfspeed by 1,419.5% during 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 in the last quarter. Panview Capital Ltd acquired a new stake in Wolfspeed during the second quarter worth $6,952,000. Readystate Asset Management LP acquired a new stake in shares of Wolfspeed during the 2nd quarter valued at about $6,841,000. Finally, SG Americas Securities LLC bought a new stake in shares of Wolfspeed in the 1st quarter valued at approximately $6,671,000.

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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