Traders Buy High Volume of Put Options on Wolfspeed (NYSE:WOLF)

Key Points

• Bearish options activity surged: Investors bought 82,482 Wolfspeed put options, about 138% above the average daily volume of 34,695.
• Wolfspeed’s quarterly revenue fell 24.1% year over year to $149.6 million, while its adjusted loss was $2.26 per share. Although the loss beat estimates and AI data-center revenue grew, analysts remain concerned about negative gross margins and the company’s path to profitability.
• Analyst sentiment remains cautious, with an average “Hold” rating and a $25 price target; TD Cowen reiterated its Hold rating, while Susquehanna cut its target to $30 and other firms maintained negative views.

Wolfspeed, Inc. (NYSE:WOLF - Get Free Report) was the target of unusually large options trading on Friday. Stock investors purchased 82,482 put options on the company. This represents an increase of approximately 138% compared to the average daily volume of 34,695 put options.

Trending Headlines about Wolfspeed

Here are the key news stories impacting Wolfspeed this week:

• Positive Sentiment: AI data-center revenue more than doubled year over year in fiscal 2026 and rose about 20% sequentially in the fourth quarter, highlighting potential demand for Wolfspeed’s silicon-carbide products. Wolfspeed Reports Financial Results for the Fourth Quarter of Fiscal 2026
• Positive Sentiment: The company reported an adjusted quarterly loss of $2.26 per share, narrower than the $2.45 consensus estimate, and launched a fifth-generation SiC MOSFET as part of its technology roadmap. Wolfspeed 2026 Q4 Results Earnings Call Presentation
• Neutral Sentiment: Wolfspeed expects first-quarter fiscal 2027 revenue of $140 million to $160 million, broadly surrounding the approximately $150.4 million analyst consensus. Wolfspeed Targets Q1 FY2027 Revenue
• Negative Sentiment: Quarterly revenue was $149.6 million, essentially matching estimates but declining 24.1% year over year. The loss also widened substantially from $0.77 per share in the prior-year quarter, reinforcing concerns about the company’s path to profitability. Wolfspeed Sinks on Wider-Than-Expected Loss
• Negative Sentiment: Analysts noted that Wolfspeed continues to post negative gross margins and faces a long road to sustainable profits, overshadowing progress in data centers. Wolfspeed Makes Gains in Data Centers
• Negative Sentiment: TD Cowen reaffirmed its “Hold” rating and set a $25 price target, signaling limited upside or potential downside from recent trading levels. Wolfspeed Receives a Hold from TD Cowen

Wolfspeed Price Performance

Shares of Wolfspeed stock traded up $0.14 during trading on Friday, reaching $26.49. 1,722,181 shares of the stock traded hands, compared to its average volume of 4,490,951. Wolfspeed has a 52-week low of $8.05 and a 52-week high of $80.82. The business has a fifty day simple moving average of $35.44 and a two-hundred day simple moving average of $32.77. The company has a market capitalization of $1.38 billion and a price-to-earnings ratio of -1.68.

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

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the business. Teza Capital Management LLC bought a new stake in Wolfspeed in the second quarter worth $347,000. Ratan Capital Management LP purchased a new position in shares of Wolfspeed in the 2nd quarter worth $2,467,000. Panview Capital Ltd purchased a new position in shares of Wolfspeed in the 2nd quarter worth $6,952,000. Renesas Electronics America Inc. bought a new stake in shares of Wolfspeed in the 2nd quarter worth about $813,126,949,000. Finally, Atlas Brown Inc. raised its position in shares of Wolfspeed by 29.2% during the 2nd quarter. Atlas Brown Inc. now owns 32,300 shares of the company's stock valued at $1,558,000 after buying an additional 7,300 shares in the last quarter.

Wall Street Analyst Weigh In

Several brokerages have recently commented on WOLF. TD Cowen restated a "hold" rating and issued a $25.00 price objective on shares of Wolfspeed in a research report on Thursday. Wall Street Zen downgraded Wolfspeed from a "sell" rating to a "strong sell" rating in a research note on Saturday, August 1st. Susquehanna lowered their price target on Wolfspeed from $40.00 to $30.00 and set a "neutral" rating on the stock in a report on Tuesday, July 21st. Finally, Weiss Ratings restated a "sell (d-)" rating on shares of Wolfspeed in a research note on Wednesday, June 24th. One equities research analyst has rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock currently has an average rating of "Hold" and an average target price of $25.00.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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