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

Key Points

• Wolfspeed shares gapped up premarket, opening at $26.49 versus the prior close of $24.70 and last trading around $26.74 on volume of about 927,836 shares.
• Major quarterly miss: the company reported EPS of ($6.11) vs. a consensus of ($0.74) and saw revenue decline 6.6% year-over-year.
• Analyst sentiment skews negative; MarketBeat shows an average rating of "Reduce" with an average target price of $14.33, despite a few divergent calls such as Piper Sandler's "overweight" view.

Wolfspeed, Inc. (NYSE:WOLF - Get Free Report)'s stock price gapped up before the market opened on Wednesday . The stock had previously closed at $24.70, but opened at $26.49. Wolfspeed shares last traded at $26.7410, with a volume of 927,836 shares traded.

Analyst Upgrades and Downgrades

A number of analysts have weighed in on WOLF shares. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Wolfspeed in a research report on Friday, March 27th. Zacks Research raised Wolfspeed to a "hold" rating in a report on Monday, February 9th. Wall Street Zen cut Wolfspeed from a "hold" rating to a "sell" rating in a report on Saturday, February 7th. Susquehanna reduced their price target on Wolfspeed from $30.00 to $20.00 and set a "neutral" rating for the company in a report on Thursday, January 22nd. Finally, Piper Sandler reissued 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 data from MarketBeat, the company has an average rating of "Reduce" and an average target price of $14.33.

Wolfspeed Stock Up 5.3%

The firm has a fifty day moving average of $19.23 and a 200-day moving average of $20.56. The stock has a market capitalization of $1.17 billion and a price-to-earnings ratio of -3.70.

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). The firm's quarterly revenue was down 6.6% compared to the same quarter last year. During the same period in the prior year, the business earned ($0.95) EPS.

Institutional Investors Weigh In On Wolfspeed

Hedge funds and other institutional investors have recently made changes to their positions in the business. Canada Pension Plan Investment Board purchased a new stake in shares of Wolfspeed in the second quarter valued at $34,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. purchased a new stake in Wolfspeed during the second quarter valued at about $34,000. Summit Securities Group LLC grew its position in Wolfspeed by 71.0% during the fourth 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 during the period. Marex Group plc purchased a new stake in Wolfspeed during the second quarter valued at about $44,000. Finally, Eastern Bank purchased a new stake in Wolfspeed during the fourth quarter valued at about $46,000.

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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