Wolfspeed (NYSE:WOLF) Sees Unusually-High Trading Volume - What's Next?

Key Points

• Unusually-strong trading volume: About 3,156,344 shares traded on Tuesday (up ~79% from the prior session) as the stock moved from a prior close of $26.33 to a last trade of $29.1680.
• Severe earnings miss and weak outlook: Wolfspeed reported Q EPS of ($6.11) versus an expected ($0.74) and revenue down 6.6% year-over-year, and analysts have a consensus rating of "Reduce" with a $14.33 consensus price target.
• Notable institutional buying: Major firms increased positions recently—Goldman Sachs lifted its stake by 176.7% (adding 881,603 shares) and UBS increased its stake by 94.3% (adding 906,968 shares), signaling institutional interest amid the volatility.

Wolfspeed, Inc. (NYSE:WOLF - Get Free Report) saw unusually-strong trading volume on Tuesday . Approximately 3,156,344 shares traded hands during trading, an increase of 79% from the previous session's volume of 1,767,072 shares.The stock last traded at $29.1680 and had previously closed at $26.33.

Analyst Ratings Changes

A number of equities research analysts recently issued reports on WOLF shares. Susquehanna decreased their price target 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. Piper Sandler reaffirmed an "overweight" rating and issued a $20.00 price target (up from $6.00) on shares of Wolfspeed in a report on Thursday, February 5th. Zacks Research upgraded Wolfspeed to a "hold" rating in a research report on Monday, February 9th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Wolfspeed in a research report on Friday, March 27th. Finally, Wall Street Zen downgraded Wolfspeed from a "hold" rating to a "sell" rating in a research report on Saturday, February 7th. One investment analyst has rated the stock with a Buy rating, two have issued a Hold rating and three have given a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Reduce" and a consensus price target of $14.33.

Wolfspeed Price Performance

The company has a market capitalization of $1.21 billion and a P/E ratio of -3.80. The business has a 50-day moving average of $19.05 and a 200-day moving average of $20.56.

Wolfspeed (NYSE:WOLF - Get Free Report) last released its 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). The company's revenue for the quarter was down 6.6% compared to the same quarter last year. During the same period in the previous year, the company posted ($0.95) EPS.

Institutional Trading of Wolfspeed

Institutional investors have recently added to or reduced their stakes in the company. Goldman Sachs Group Inc. lifted 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 acquiring an additional 881,603 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its stake in Wolfspeed by 94.3% in the first 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 period. WINTON GROUP Ltd bought a new stake in shares of Wolfspeed during the second quarter worth $47,000. Ilex Capital Partners UK LLP lifted its position in shares of Wolfspeed by 499.1% during the second quarter. Ilex Capital Partners UK LLP now owns 665,697 shares of the company's stock worth $265,000 after purchasing an additional 554,587 shares during the last quarter. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. bought a new stake in shares of Wolfspeed during the second quarter worth $34,000.

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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