Wolfspeed (NYSE:WOLF) Trading 6.2% Higher - Still a Buy?

Key Points

• Wolfspeed shares rose 6.2% to about $26.87, though trading volume was 89% below the average session volume.
• Analyst sentiment remains cautious: the stock has a consensus “Hold” rating and a $25.00 price target, with one Buy, three Hold, and one Sell rating.
• Wolfspeed exceeded quarterly loss estimates, reporting adjusted EPS of -$2.26 versus the expected -$2.45, but revenue fell 24.1% year over year to $149.6 million.

Wolfspeed, Inc. (NYSE:WOLF - Get Free Report)'s stock price was up 6.2% during trading on Wednesday . The company traded as high as $26.67 and last traded at $26.8680. 479,668 shares were traded during trading, a decline of 89% from the average session volume of 4,457,632 shares. The stock had previously closed at $25.29.

Analyst Ratings Changes

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

Wolfspeed Price Performance

The company has a market cap of $1.45 billion and a P/E ratio of -1.73. The stock has a 50-day moving average of $34.22 and a 200 day moving average of $32.95.

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

Institutional Trading of Wolfspeed

A number of institutional investors and hedge funds have recently made changes to their positions in WOLF. California State Teachers Retirement System acquired a new stake in shares of Wolfspeed during the 2nd quarter worth approximately $72,081,000. Readystate Asset Management LP acquired a new position in Wolfspeed during the second quarter valued at approximately $6,841,000. Concurrent Investment Advisors LLC bought a new stake in Wolfspeed during the second quarter worth $229,000. AXQ Capital LP bought a new stake in Wolfspeed during the second quarter worth $208,000. Finally, Teza Capital Management LLC acquired a new stake in shares of Wolfspeed in the 2nd quarter valued at $347,000.

About Wolfspeed

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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