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

Key Points

• Traders showed a bearish tilt on Wolfspeed (NYSE:WOLF) by buying 50,729 put options on Monday, about 140% above its average daily put volume.
• The stock fell to $33.87 on Monday, with trading volume below its average; Wolfspeed now has a $1.76 billion market cap and remains well below its 52-week high of $80.82.
• Recent earnings beat estimates on both EPS and revenue, but revenue still declined 19% year over year, and analysts currently rate the stock Hold on average with a $20 consensus price target.

Wolfspeed, Inc. (NYSE:WOLF - Get Free Report) saw unusually large options trading activity on Monday. Traders bought 50,729 put options on the stock. This is an increase of 140% compared to the average daily volume of 21,098 put options.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in WOLF. Canada Pension Plan Investment Board bought a new stake in shares of Wolfspeed in the second quarter valued at about $34,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. bought a new position in Wolfspeed during the second quarter valued at about $34,000. Summit Securities Group LLC raised its holdings in Wolfspeed by 71.0% in the 4th quarter. Summit Securities Group LLC now owns 2,204 shares of the company's stock valued at $38,000 after acquiring an additional 915 shares in the last quarter. Marex Group plc bought a new stake in shares of Wolfspeed in the 2nd quarter worth approximately $44,000. Finally, Eastern Bank acquired a new stake in shares of Wolfspeed during the 4th quarter worth approximately $46,000.

Wolfspeed Stock Performance

Shares of Wolfspeed stock traded down $1.42 during trading on Monday, reaching $33.87. The company's stock had a trading volume of 1,807,672 shares, compared to its average volume of 4,483,828. Wolfspeed has a one year low of $8.05 and a one year high of $80.82. The firm has a market cap of $1.76 billion and a price-to-earnings ratio of -3.20. The business's fifty day moving average price is $51.64 and its 200-day moving average price is $30.71.

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

Wall Street Analysts Forecast Growth

Several equities analysts have commented on WOLF shares. Wall Street Zen raised shares of Wolfspeed from a "strong sell" rating to a "sell" rating in a research report on Saturday, May 9th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Wolfspeed in a report on Wednesday, June 24th. One analyst has rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, Wolfspeed has an average rating of "Hold" and a consensus target price of $20.00.

Wolfspeed Company Profile

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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