Wolfspeed (NYSE:WOLF) Trading 6.3% Higher - Still a Buy?

Wolfspeed, Inc. (NYSE:WOLF - Get Free Report)'s stock price was up 6.3% on Monday . The company traded as high as $1.33 and last traded at $1.27. Approximately 7,623,102 shares traded hands during mid-day trading, a decline of 56% from the average daily volume of 17,472,346 shares. The stock had previously closed at $1.19.

Wall Street Analysts Forecast Growth

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

Wolfspeed Trading Down 7.1%

The business has a fifty day moving average price of $2.71 and a two-hundred day moving average price of $5.32. The company has a current ratio of 3.15, a quick ratio of 2.47 and a debt-to-equity ratio of 17.26. The firm has a market capitalization of $232.66 million, a PE ratio of -0.19 and a beta of 1.29.

Wolfspeed (NYSE:WOLF - Get Free Report) last issued its quarterly earnings data on Thursday, May 8th. The company reported ($0.72) EPS for the quarter, topping the consensus estimate of ($0.82) by $0.10. Wolfspeed had a negative net margin of 125.96% and a negative return on equity of 70.84%. The firm had revenue of $185.40 million for the quarter, compared to analyst estimates of $190.03 million. During the same period in the prior year, the business posted ($0.62) EPS. The business's revenue for the quarter was down 7.6% compared to the same quarter last year. Analysts expect that Wolfspeed, Inc. will post -4 EPS for the current fiscal year.

Insider Buying and Selling

In other Wolfspeed news, CFO Neill Reynolds sold 13,909 shares of the 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 sale, the chief financial officer now directly owns 195,257 shares of the company's stock, valued at approximately $779,075.43. This represents a 6.65% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. 0.84% of the stock is owned by insiders.

Institutional Investors Weigh In On Wolfspeed

A number of large investors have recently modified their holdings of WOLF. Vanguard Group Inc. increased its position in shares of Wolfspeed by 18.8% in the 1st quarter. Vanguard Group Inc. now owns 18,913,793 shares of the company's stock valued at $57,876,000 after purchasing an additional 2,989,503 shares during the last quarter. Shah Capital Management purchased a new stake in shares of Wolfspeed in the 1st quarter valued at approximately $6,586,000. Neuberger Berman Group LLC increased its position in shares of Wolfspeed by 72.7% in the 1st quarter. Neuberger Berman Group LLC now owns 4,329,584 shares of the company's stock valued at $13,723,000 after purchasing an additional 1,822,958 shares during the last quarter. Jump Financial LLC purchased a new stake in shares of Wolfspeed in the 1st quarter valued at approximately $4,402,000. Finally, Frontier Capital Management Co. LLC increased its position in shares of Wolfspeed by 94.2% in the 4th quarter. Frontier Capital Management Co. LLC now owns 2,050,778 shares of the company's stock valued at $13,658,000 after purchasing an additional 995,020 shares during the last quarter.

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.