Wolfspeed (NYSE:WOLF) Stock Price Up 5.9% - Should You Buy?

Key Points

• Wolfspeed shares jumped 5.9% intraday to $18.50, but trading volume was thin (≈222,542 shares, down ~86% vs. average).
• The company reported a steep quarterly earnings miss (EPS -$6.11 vs. -$0.74 expected) and revenue down 6.6% year-over-year, and analysts’ consensus rating is “Reduce” with a $14.33 target despite some divergent price targets.
• Large institutional and strategic investors have increased or initiated stakes—most notably Renesas (~$293M) and Capital Research—reflecting significant investor interest in Wolfspeed’s SiC/GaN semiconductor business.

Wolfspeed, Inc. (NYSE:WOLF - Get Free Report)'s stock price rose 5.9% during mid-day trading on Monday . The company traded as high as $18.71 and last traded at $18.50. Approximately 222,542 shares traded hands during trading, a decline of 86% from the average daily volume of 1,606,322 shares. The stock had previously closed at $17.47.

Analyst Upgrades and Downgrades

Several research analysts have weighed in on the stock. Piper Sandler reaffirmed an "overweight" rating and set a $20.00 target price (up from $6.00) on shares of Wolfspeed in a research note on Thursday, February 5th. Weiss Ratings restated a "sell (d-)" rating on shares of Wolfspeed in a report on Friday, March 27th. Zacks Research raised shares of Wolfspeed to a "hold" rating in a research report on Monday, February 9th. Susquehanna dropped their target price on shares of Wolfspeed from $30.00 to $20.00 and set a "neutral" rating for the company in a report on Thursday, January 22nd. Finally, Wall Street Zen cut Wolfspeed from a "hold" rating to a "sell" rating in a research note on Saturday, February 7th. One equities research analyst has rated the stock with a Buy rating, two have given a Hold rating and three have issued a Sell rating to the company's stock. According to MarketBeat.com, the stock currently has a consensus rating of "Reduce" and a consensus target price of $14.33.

Wolfspeed Stock Up 2.7%

The business's fifty day moving average is $17.63 and its two-hundred day moving average is $19.57. The stock has a market cap of $809.37 million and a price-to-earnings ratio of -2.56.

Wolfspeed (NYSE:WOLF - Get Free Report) last issued its quarterly earnings results on Wednesday, January 28th. The company reported ($6.11) EPS for the quarter, missing the consensus estimate of ($0.74) by ($5.37). During the same quarter in the prior year, the firm earned ($0.95) EPS. The business's quarterly revenue was down 6.6% compared to the same quarter last year. As a group, sell-side analysts expect that Wolfspeed, Inc. will post -4 earnings per share for the current year.

Hedge Funds Weigh In On Wolfspeed

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Renesas Electronics America Inc. purchased a new stake in shares of Wolfspeed during the fourth quarter worth approximately $293,400,000. Capital Research Global Investors acquired a new position in Wolfspeed during the 3rd quarter worth approximately $79,426,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its position in shares of Wolfspeed by 94.3% in 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 valued at $5,718,000 after purchasing an additional 906,968 shares during the last quarter. Goldman Sachs Group Inc. raised its holdings in shares of Wolfspeed by 176.7% in the 1st quarter. Goldman Sachs Group Inc. now owns 1,380,499 shares of the company's stock valued at $4,224,000 after purchasing an additional 881,603 shares in the last quarter. Finally, UBS Group AG lifted its position in shares of Wolfspeed by 3,413.9% during the 4th quarter. UBS Group AG now owns 1,269,548 shares of the company's stock worth $22,103,000 after purchasing an additional 1,233,419 shares during the last quarter.

Wolfspeed Company Profile

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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