Traders Purchase High Volume of Call Options on Wolfspeed (NYSE:WOLF)

Key Points

• Wolfspeed saw unusually heavy call-option activity on Monday, with traders purchasing 73,244 calls—160% above the average volume of 28,223.
• Shares rose $1.73 to $25.35, but remain well below their 50-day moving average of $43.62. The company recently beat quarterly EPS expectations, though revenue fell 19% year over year.
• Analyst sentiment remains cautious: Wolfspeed has a consensus “Hold” rating, with an average price target of $25, while several analysts recently downgraded the stock or lowered their price targets.

Wolfspeed, Inc. (NYSE:WOLF - Get Free Report) was the recipient of unusually large options trading activity on Monday. Traders bought 73,244 call options on the stock. This is an increase of 160% compared to the average volume of 28,223 call options.

Wolfspeed Stock Performance

Shares of NYSE:WOLF traded up $1.73 during trading on Monday, reaching $25.35. 2,026,033 shares of the stock traded hands, compared to its average volume of 4,433,804. The stock has a 50-day moving average of $43.62 and a two-hundred day moving average of $31.71. Wolfspeed has a 52-week low of $8.05 and a 52-week high of $80.82. The stock has a market cap of $1.32 billion and a P/E ratio of -2.40.

Wolfspeed (NYSE:WOLF - Get Free Report) last released its quarterly earnings data on Tuesday, May 5th. The company reported ($3.26) earnings per share (EPS) for the quarter, beating the consensus estimate of ($3.78) by $0.52. The business had revenue of $150.20 million during the quarter, compared to the consensus estimate of $150.00 million. The business's revenue was down 19.0% compared to the same quarter last year. During the same period last year, the company posted ($0.72) earnings per share.

Analyst Ratings Changes

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

Institutional Trading of Wolfspeed

A number of institutional investors have recently made changes to their positions in the stock. Canada Pension Plan Investment Board bought a new stake in shares of Wolfspeed in the second quarter worth approximately $34,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. bought a new position in Wolfspeed during the second quarter valued at approximately $34,000. Summit Securities Group LLC boosted its holdings in Wolfspeed by 71.0% in the fourth quarter. Summit Securities Group LLC now owns 2,204 shares of the company's stock worth $38,000 after purchasing an additional 915 shares during the last quarter. Marex Group plc purchased a new stake in Wolfspeed in the second quarter worth approximately $44,000. Finally, WINTON GROUP Ltd bought a new stake in Wolfspeed in the 2nd quarter worth approximately $47,000.

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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