Wolfspeed (NYSE:WOLF) Trading 55.9% Higher - Should You Buy?

Wolfspeed (NYSE:WOLF - Get Free Report)'s share price shot up 55.9% during trading on Friday . The stock traded as high as $1.35 and last traded at $1.21. 209,766,619 shares were traded during trading, an increase of 804% from the average session volume of 23,215,630 shares. The stock had previously closed at $0.77.

Wall Street Analyst Weigh In

Several research firms have commented on WOLF. The Goldman Sachs Group lowered their target price on shares of Wolfspeed from $15.00 to $8.00 and set a "buy" rating on the stock in a research report on Wednesday, April 2nd. JPMorgan Chase & Co. reissued an "underweight" rating on shares of Wolfspeed in a research report on Friday, May 9th. Citigroup reissued 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 lowered their target price on shares of Wolfspeed from $10.00 to $6.00 and set an "overweight" rating on the stock in a research report on Friday, May 9th. Five analysts have rated the stock with a sell rating, six have given a hold rating and four have assigned a buy rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average price target of $11.15.

Wolfspeed Trading Up 97.5%

The company has a debt-to-equity ratio of 30.65, a current ratio of 4.64 and a quick ratio of 3.90. The company's 50 day moving average is $2.01 and its two-hundred day moving average is $4.08. The firm has a market cap of $362.62 million, a P/E ratio of -0.28 and a beta of 1.09.

Wolfspeed (NYSE:WOLF - Get Free Report) last released its earnings results on Thursday, May 8th. The company reported ($0.72) earnings per share for the quarter, beating the consensus estimate of ($0.82) by $0.10. Wolfspeed had a negative net margin of 146.43% and a negative return on equity of 103.97%. The business had revenue of $185.40 million during the quarter, compared to analysts' expectations of $190.03 million. During the same quarter last year, the company earned ($0.62) earnings per share. The firm's revenue was down 7.6% on a year-over-year basis. On average, sell-side analysts predict that Wolfspeed will post -4 earnings per share for the current year.

Insider Buying and Selling

In other Wolfspeed news, CFO Neill Reynolds sold 13,909 shares of the firm's stock in a transaction dated Monday, April 28th. The shares were sold at an average price of $3.99, for a total transaction of $55,496.91. Following the completion of the transaction, the chief financial officer owned 195,257 shares in the company, valued at $779,075.43. This trade represents a 6.65% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 0.84% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in WOLF. Jones Financial Companies Lllp lifted its stake in Wolfspeed by 1,240.6% during the fourth quarter. Jones Financial Companies Lllp now owns 3,834 shares of the company's stock worth $26,000 after purchasing an additional 3,548 shares during the period. SBI Securities Co. Ltd. bought a new position in Wolfspeed during the fourth quarter worth about $74,000. Steward Partners Investment Advisory LLC lifted its stake in Wolfspeed by 192.0% during the fourth 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 during the period. Charles Schwab Investment Management Inc. increased its holdings in shares of Wolfspeed by 38.6% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 1,207,157 shares of the company's stock worth $8,040,000 after buying an additional 335,966 shares in the last quarter. Finally, Keybank National Association OH increased its holdings in shares of Wolfspeed by 29.0% during the fourth quarter. Keybank National Association OH now owns 28,399 shares of the company's stock worth $189,000 after buying an additional 6,389 shares in the last quarter.

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.