Wolfspeed (NYSE:WOLF) Stock Price Up 12.3% - Here's What Happened

Key Points

• Shares jumped ~12.3% intraday, trading as high as $27.58 and last around $28.78, while volume was sharply below average (348,151 shares vs. a 2.14M average, down ~84%).
• Wolfspeed badly missed quarterly expectations, reporting ($6.11) EPS vs. ($0.74) est. and a 6.6% year-over-year revenue decline.
• Analysts are skeptical overall: the consensus rating is "Reduce" with a consensus target price of $14.33, despite mixed individual ratings (1 Buy, 2 Hold, 3 Sell).

Shares of Wolfspeed, Inc. (NYSE:WOLF - Get Free Report) shot up 12.3% during mid-day trading on Thursday . The stock traded as high as $27.58 and last traded at $28.7820. 348,151 shares changed hands during trading, a decline of 84% from the average session volume of 2,136,675 shares. The stock had previously closed at $25.63.

Wall Street Analyst Weigh In

Several research firms recently issued reports on WOLF. Zacks Research raised Wolfspeed to a "hold" rating in a research report on Monday, February 9th. Wall Street Zen lowered Wolfspeed from a "hold" rating to a "sell" rating in a report on Saturday, February 7th. Weiss Ratings reissued a "sell (d-)" rating on shares of Wolfspeed in a report on Friday, March 27th. Susquehanna lowered their price target on Wolfspeed from $30.00 to $20.00 and set a "neutral" rating on the stock in a report on Thursday, January 22nd. Finally, Piper Sandler reissued an "overweight" rating and set a $20.00 price target (up from $6.00) on shares of Wolfspeed in a report on Thursday, February 5th. One equities research analyst has rated the stock with a Buy rating, two have assigned a Hold rating and three have given a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Reduce" and a consensus target price of $14.33.

Wolfspeed Trading Up 12.7%

The stock has a market capitalization of $1.30 billion and a price-to-earnings ratio of -4.12. The stock has a 50-day simple moving average of $20.41 and a 200 day simple moving average of $20.53.

Wolfspeed (NYSE:WOLF - Get Free Report) last posted its quarterly earnings results on Wednesday, January 28th. The company reported ($6.11) earnings per share for the quarter, missing analysts' consensus estimates of ($0.74) by ($5.37). Wolfspeed's revenue for the quarter was down 6.6% compared to the same quarter last year. During the same period in the prior year, the firm earned ($0.95) earnings per share.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in WOLF. Goldman Sachs Group Inc. grew its holdings in shares of Wolfspeed by 176.7% during the 1st quarter. Goldman Sachs Group Inc. now owns 1,380,499 shares of the company's stock worth $4,224,000 after purchasing an additional 881,603 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its holdings in shares of Wolfspeed by 94.3% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 1,868,741 shares of the company's stock worth $5,718,000 after purchasing an additional 906,968 shares in the last quarter. WINTON GROUP Ltd acquired a new stake in shares of Wolfspeed during the 2nd quarter worth approximately $47,000. Ilex Capital Partners UK LLP grew its holdings in shares of Wolfspeed by 499.1% during the 2nd quarter. Ilex Capital Partners UK LLP now owns 665,697 shares of the company's stock worth $265,000 after purchasing an additional 554,587 shares in the last quarter. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. acquired a new stake in Wolfspeed in the 2nd quarter valued at $34,000.

About Wolfspeed

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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