Wolfspeed (NYSE:WOLF) Shares Gap Up - Here's What Happened

Key Points

• Shares gapped up premarket from $35.94 to an $38.69 open and last traded around $37.80 on volume of about 1.55 million shares.
• Wolfspeed reported a large quarterly EPS miss of ($6.11) vs. $0.74 expected and revenue down 6.6% year-over-year, while analysts carry a consensus rating of "Reduce" and a price target of $14.33.
• Despite weak results and negative analyst sentiment, institutional activity included a large stake build by Shah Capital (up 1,419.5% to 508,948 shares, roughly $8.3M), highlighting mixed investor views.

Shares of Wolfspeed, Inc. (NYSE:WOLF - Get Free Report) gapped up before the market opened on Tuesday . The stock had previously closed at $35.94, but opened at $38.69. Wolfspeed shares last traded at $37.7950, with a volume of 1,551,664 shares trading hands.

Analyst Upgrades and Downgrades

WOLF has been the subject of several research analyst reports. Wall Street Zen cut shares of Wolfspeed from a "hold" rating to a "sell" rating in a research note on Saturday, February 7th. Zacks Research upgraded shares of Wolfspeed to a "hold" rating in a report on Monday, February 9th. Susquehanna reduced their price target on shares of Wolfspeed from $30.00 to $20.00 and set a "neutral" rating on the stock in a report on Thursday, January 22nd. Weiss Ratings reiterated a "sell (d-)" rating on shares of Wolfspeed in a report on Friday, March 27th. Finally, Piper Sandler reiterated 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. One analyst has rated the stock with a Buy rating, two have given a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat.com, the company has an average rating of "Reduce" and a consensus price target of $14.33.

Wolfspeed Stock Performance

The company has a market capitalization of $1.74 billion and a P/E ratio of -5.49. The business's fifty day simple moving average is $20.62 and its 200-day simple moving average is $20.43.

Wolfspeed (NYSE:WOLF - Get Free Report) last announced its quarterly earnings results on Wednesday, January 28th. The company reported ($6.11) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.74) by ($5.37). During the same quarter in the prior year, the company posted ($0.95) EPS. The firm's quarterly revenue was down 6.6% on a year-over-year basis.

Hedge Funds Weigh In On Wolfspeed

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Shah Capital Management grew its stake in shares of Wolfspeed by 1,419.5% in the 1st quarter. Shah Capital Management now owns 508,948 shares of the company's stock worth $8,306,000 after buying an additional 475,454 shares in the last quarter. Atlas Brown Inc. purchased a new position in shares of Wolfspeed in the 1st quarter worth $408,000. SG Americas Securities LLC purchased a new position in shares of Wolfspeed in the 1st quarter worth $6,671,000. Yaupon Capital Management LP purchased a new position in shares of Wolfspeed in the 4th quarter worth $7,834,000. Finally, Summit Securities Group LLC grew its stake in shares of Wolfspeed by 71.0% in the 4th quarter. Summit Securities Group LLC now owns 2,204 shares of the company's stock worth $38,000 after buying an additional 915 shares in 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.

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.