Wolfspeed (NYSE:WOLF) Trading 110.6% Higher - Should You Buy?

Wolfspeed (NYSE:WOLF - Get Free Report) was up 110.6% on Tuesday . The stock traded as high as $1.10 and last traded at $0.84. Approximately 314,454,247 shares were traded during trading, an increase of 1,377% from the average daily volume of 21,295,390 shares. The stock had previously closed at $0.40.

Wall Street Analyst Weigh In

A number of equities research analysts have weighed in on the company. The Goldman Sachs Group decreased their price target on Wolfspeed from $15.00 to $8.00 and set a "buy" rating on the stock in a research note on Wednesday, April 2nd. Citigroup reaffirmed a "sell" rating and issued a $3.00 price objective (down from $7.00) on shares of Wolfspeed in a research note on Friday, May 9th. JPMorgan Chase & Co. reissued an "underweight" rating on shares of Wolfspeed in a research note on Friday, May 9th. Finally, Piper Sandler dropped their target price on shares of Wolfspeed from $10.00 to $6.00 and set an "overweight" rating for the company in a report on Friday, May 9th. Five investment analysts have rated the stock with a sell rating, six have given a hold rating and four have given a buy rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Hold" and an average price target of $11.15.

Wolfspeed Stock Performance

The firm has a market capitalization of $128.86 million, a P/E ratio of -0.10 and a beta of 1.10. The company has a current ratio of 4.64, a quick ratio of 3.90 and a debt-to-equity ratio of 30.65. The company has a 50-day moving average of $2.16 and a 200-day moving average of $4.28.

Wolfspeed (NYSE:WOLF - Get Free Report) last issued its quarterly earnings data on Thursday, May 8th. The company reported ($0.72) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.82) by $0.10. The company had revenue of $185.40 million during the quarter, compared to the consensus estimate of $190.03 million. Wolfspeed had a negative return on equity of 103.97% and a negative net margin of 146.43%. The firm's revenue was down 7.6% compared to the same quarter last year. During the same period last year, the company earned ($0.62) earnings per share. On average, equities analysts anticipate that Wolfspeed will post -4 earnings per share for the current fiscal year.

Insider Transactions at Wolfspeed

In other news, CFO Neill Reynolds sold 13,909 shares of the business's stock in a transaction that occurred on Monday, April 28th. The shares were sold at an average price of $3.99, for a total value of $55,496.91. Following the transaction, the chief financial officer owned 195,257 shares in the company, valued at approximately $779,075.43. The trade was a 6.65% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Insiders own 0.84% of the company's stock.

Hedge Funds Weigh In On Wolfspeed

A number of hedge funds have recently bought and sold shares of the company. Sterling Capital Management LLC raised its stake in Wolfspeed by 51.4% during the 4th quarter. Sterling Capital Management LLC now owns 7,463 shares of the company's stock worth $50,000 after buying an additional 2,533 shares during the period. Ground Swell Capital LLC raised its position in shares of Wolfspeed by 25.6% during the fourth quarter. Ground Swell Capital LLC now owns 12,827 shares of the company's stock worth $85,000 after purchasing an additional 2,611 shares during the period. Steward Partners Investment Advisory LLC lifted its holdings in shares of Wolfspeed by 192.0% in the 4th quarter. Steward Partners Investment Advisory LLC now owns 4,429 shares of the company's stock worth $29,000 after purchasing an additional 2,912 shares in the last quarter. Victory Capital Management Inc. lifted its holdings in shares of Wolfspeed by 12.4% in the 1st quarter. Victory Capital Management Inc. now owns 26,562 shares of the company's stock worth $81,000 after purchasing an additional 2,922 shares in the last quarter. Finally, Mutual of America Capital Management LLC grew its position in Wolfspeed by 17.1% in the 1st quarter. Mutual of America Capital Management LLC now owns 22,653 shares of the company's stock valued at $69,000 after purchasing an additional 3,308 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.