Wolfspeed (NYSE:WOLF) Shares Gap Up - Still a Buy?

Key Points

• Wolfspeed's stock gapped up from a previous close of $31.10 to open at $33.52, last trading at $32.44 with significant volume.
• Despite the recent gains, analysts currently have a consensus rating of "Reduce" for Wolfspeed with a price target of $9.80.
• Institutional investors showed increased interest, with GAMMA Investing LLC boosting its holdings by 593.7% in the first quarter.

Wolfspeed, Inc. (NYSE:WOLF - Get Free Report) gapped up before the market opened on Monday . The stock had previously closed at $31.10, but opened at $33.52. Wolfspeed shares last traded at $32.44, with a volume of 1,007,988 shares changing hands.

Analysts Set New Price Targets

Separately, Weiss Ratings reissued a "sell (e+)" rating on shares of Wolfspeed in a report on Saturday, September 27th. Four equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and five have given a Sell rating to the stock. Based on data from MarketBeat, Wolfspeed currently has a consensus rating of "Reduce" and a consensus price target of $9.80.

Wolfspeed Stock Down 0.5%

The company has a market capitalization of $799.36 million and a PE ratio of -2.74. The stock's 50 day moving average is $6.80 and its two-hundred day moving average is $3.73.

Hedge Funds Weigh In On Wolfspeed

Several hedge funds and other institutional investors have recently modified their holdings of the stock. GAMMA Investing LLC increased its holdings in Wolfspeed by 593.7% in the 1st quarter. GAMMA Investing LLC now owns 52,503 shares of the company's stock worth $161,000 after buying an additional 44,934 shares during the period. Rhumbline Advisers increased its holdings in Wolfspeed by 10.8% in the 1st quarter. Rhumbline Advisers now owns 342,505 shares of the company's stock worth $1,048,000 after buying an additional 33,361 shares during the period. Yousif Capital Management LLC increased its holdings in Wolfspeed by 16.8% in the 1st quarter. Yousif Capital Management LLC now owns 56,559 shares of the company's stock worth $173,000 after buying an additional 8,137 shares during the period. SG Americas Securities LLC increased its holdings in Wolfspeed by 422.0% in the 1st quarter. SG Americas Securities LLC now owns 533,965 shares of the company's stock worth $1,634,000 after buying an additional 431,680 shares during the period. Finally, State of Alaska Department of Revenue increased its holdings in Wolfspeed by 18.8% in the 1st quarter. State of Alaska Department of Revenue now owns 86,200 shares of the company's stock worth $263,000 after buying an additional 13,618 shares during the period.

About Wolfspeed

Wolfspeed, Inc operates as a powerhouse semiconductor company focuses on silicon carbide and gallium nitride (GaN) technologies in Europe, Hong Kong, China, rest of Asia-Pacific, the United States, and internationally. It offers silicon carbide and GaN materials, including silicon carbide bare wafers, epitaxial wafers, and GaN epitaxial layers on silicon carbide wafers to manufacture products for RF, power, and other applications.

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