Wolfspeed (NYSE:WOLF) Trading Up 2.3% - Here's Why

Key Points

• Wolfspeed's shares rose **2.3%**, closing at **$1.57** with a total of **3,627,902** shares traded, significantly lower than its average volume.
• Analysts have mixed ratings on the stock, with five analysts recommending a **sell**, while others have issued **hold** and **buy** ratings, resulting in a consensus rating of **"Hold"** and a price target of **$11.15**.
• The company's recent earnings report showed a loss of **($0.72)** per share, which was better than the consensus estimate, despite a **7.6%** decrease in revenue compared to the previous year.

Wolfspeed (NYSE:WOLF - Get Free Report) rose 2.3% on Wednesday . The stock traded as high as $1.62 and last traded at $1.57. Approximately 3,627,902 shares traded hands during mid-day trading, a decline of 91% from the average daily volume of 41,909,922 shares. The stock had previously closed at $1.53.

Wall Street Analysts Forecast Growth

WOLF has been the subject of several recent research reports. JPMorgan Chase & Co. reiterated an "underweight" rating on shares of Wolfspeed in a research report on Friday, May 9th. Citigroup restated a "sell" rating and set a $3.00 target price (down from $7.00) on shares of Wolfspeed in a research report on Friday, May 9th. Finally, Piper Sandler reduced their target price on Wolfspeed from $10.00 to $6.00 and set an "overweight" rating for the company in a research report on Friday, May 9th. Five analysts have rated the stock with a sell rating, five have issued a hold rating and four have given a buy rating to the stock. According to data from MarketBeat, the company has an average rating of "Hold" and a consensus price target of $11.15.

Wolfspeed Price Performance

The firm has a fifty day moving average price of $1.33 and a two-hundred day moving average price of $3.46. The stock has a market capitalization of $235.78 million, a P/E ratio of -0.18 and a beta of 1.21. The company has a debt-to-equity ratio of 30.65, a quick ratio of 3.90 and a current ratio of 4.64.

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

Hedge Funds Weigh In On Wolfspeed

A number of institutional investors have recently bought and sold shares of WOLF. Sterling Capital Management LLC grew its position in shares of Wolfspeed by 51.4% during the fourth quarter. Sterling Capital Management LLC now owns 7,463 shares of the company's stock valued at $50,000 after purchasing an additional 2,533 shares in the last quarter. N.E.W. Advisory Services LLC purchased a new position in shares of Wolfspeed during the first quarter valued at about $28,000. GABELLI & Co INVESTMENT ADVISERS INC. purchased a new position in shares of Wolfspeed during the fourth quarter valued at about $67,000. One68 Global Capital LLC purchased a new position in shares of Wolfspeed during the fourth quarter valued at about $67,000. Finally, Beacon Capital Management LLC purchased a new position in shares of Wolfspeed during the first quarter valued at about $31,000.

Wolfspeed Company Profile

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.