Wolfspeed (NYSE:WOLF) Reaches New 52-Week High - Should You Buy?

Key Points

• Wolfspeed stock surged to a new 52-week high, trading as high as $36.60 (last $36.48) on heavy volume and up about 24.6% from the prior close of $29.53.
• Despite the rally, analysts hold a negative view with a consensus "Reduce" rating and an average price target of $14.33 (ratings split: 1 Buy, 2 Hold, 3 Sell), implying a large gap between current price and analyst expectations.
• Fundamentals are weak: Wolfspeed reported a quarterly EPS of ($6.11), missing estimates by $5.37, with quarterly revenue down 6.6% year-over-year and a market cap of about $1.66 billion.

Wolfspeed, Inc. (NYSE:WOLF - Get Free Report) hit a new 52-week high during trading on Friday . The company traded as high as $36.60 and last traded at $36.4790, with a volume of 4745592 shares trading hands. The stock had previously closed at $29.53.

Analyst Ratings Changes

A number of equities research analysts recently commented on WOLF shares. Zacks Research raised shares of Wolfspeed to a "hold" rating in a research note on Monday, February 9th. Wall Street Zen cut shares of Wolfspeed from a "hold" rating to a "sell" rating in a research note on Saturday, February 7th. Piper Sandler reissued an "overweight" rating and issued a $20.00 price objective (up from $6.00) on shares of Wolfspeed in a research note on Thursday, February 5th. Weiss Ratings reissued a "sell (d-)" rating on shares of Wolfspeed in a research note on Friday, March 27th. Finally, Susquehanna lowered their price objective on shares of Wolfspeed from $30.00 to $20.00 and set a "neutral" rating on the stock in a research note on Thursday, January 22nd. One investment analyst has rated the stock with a Buy rating, two have assigned a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat, Wolfspeed currently has a consensus rating of "Reduce" and an average price target of $14.33.

Wolfspeed Trading Up 24.6%

The stock has a market capitalization of $1.66 billion and a price-to-earnings ratio of -5.23. The stock's 50 day moving average is $20.62 and its 200 day moving average is $20.60.

Wolfspeed (NYSE:WOLF - Get Free Report) last released its quarterly earnings results on Wednesday, January 28th. The company reported ($6.11) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.74) by ($5.37). During the same period in the prior year, the business earned ($0.95) EPS. The firm's quarterly revenue was down 6.6% compared to the same quarter last year.

Institutional Investors Weigh In On Wolfspeed

Several hedge funds have recently modified their holdings of the company. Renesas Electronics America Inc. acquired a new stake in shares of Wolfspeed during the 4th quarter worth about $293,400,000. Capital Research Global Investors acquired a new stake in shares of Wolfspeed during the 3rd quarter worth about $79,426,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in shares of Wolfspeed by 94.3% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 1,868,741 shares of the company's stock worth $5,718,000 after purchasing an additional 906,968 shares during the last quarter. Goldman Sachs Group Inc. boosted its stake in shares of Wolfspeed by 176.7% during the 1st quarter. Goldman Sachs Group Inc. now owns 1,380,499 shares of the company's stock worth $4,224,000 after purchasing an additional 881,603 shares during the last quarter. Finally, UBS Group AG boosted its stake in shares of Wolfspeed by 3,413.9% during the 4th quarter. UBS Group AG now owns 1,269,548 shares of the company's stock worth $22,103,000 after purchasing an additional 1,233,419 shares during the last quarter.

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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