Wolfspeed (NYSE:WOLF) Trading 83% Higher - Here's Why

Shares of Wolfspeed (NYSE:WOLF - Get Free Report) were up 83% during trading on Monday . The stock traded as high as $2.49 and last traded at $2.16. Approximately 202,560,186 shares changed hands during mid-day trading, an increase of 740% from the average daily volume of 24,122,610 shares. The stock had previously closed at $1.18.

Analyst Upgrades and Downgrades

Several equities analysts have commented on WOLF shares. JPMorgan Chase & Co. reissued an "underweight" rating on shares of Wolfspeed in a report on Friday, May 9th. Citigroup reissued a "sell" rating and issued a $3.00 target price (down from $7.00) on shares of Wolfspeed in a report on Friday, May 9th. The Goldman Sachs Group decreased their target price 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. Finally, Piper Sandler reduced their price target on shares of Wolfspeed from $10.00 to $6.00 and set an "overweight" rating on the stock in a research note on Friday, May 9th. Five investment analysts have rated the stock with a sell rating, five have issued a hold rating and four have issued a buy rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus target price of $11.15.

Wolfspeed Stock Down 20.3%

The company has a current ratio of 4.64, a quick ratio of 3.90 and a debt-to-equity ratio of 30.65. The stock's 50-day moving average is $1.92 and its 200-day moving average is $4.02. The company has a market cap of $250.56 million, a price-to-earnings ratio of -0.19 and a beta of 1.09.

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

Insider Buying and Selling

In other Wolfspeed news, CFO Neill Reynolds sold 13,909 shares of the business's stock in a transaction on 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 sale, the chief financial officer owned 195,257 shares in the company, valued at approximately $779,075.43. The trade was a 6.65% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Company insiders own 0.84% of the company's stock.

Institutional Trading of Wolfspeed

Several institutional investors have recently made changes to their positions in the company. Sterling Capital Management LLC grew its stake in shares of Wolfspeed by 51.4% in the 4th quarter. Sterling Capital Management LLC now owns 7,463 shares of the company's stock worth $50,000 after acquiring an additional 2,533 shares in the last quarter. Ground Swell Capital LLC boosted its holdings in shares of Wolfspeed by 25.6% in the 4th quarter. Ground Swell Capital LLC now owns 12,827 shares of the company's stock worth $85,000 after buying an additional 2,611 shares during the last quarter. Steward Partners Investment Advisory LLC boosted its holdings in shares of Wolfspeed by 192.0% in the 4th quarter. Steward Partners Investment Advisory LLC now owns 4,429 shares of the company's stock worth $29,000 after buying an additional 2,912 shares during the last quarter. Victory Capital Management Inc. boosted its holdings in shares of Wolfspeed by 12.4% in the 1st quarter. Victory Capital Management Inc. now owns 26,562 shares of the company's stock worth $81,000 after buying an additional 2,922 shares during the last quarter. Finally, Mutual of America Capital Management LLC boosted its holdings in shares of Wolfspeed by 17.1% in the 1st quarter. Mutual of America Capital Management LLC now owns 22,653 shares of the company's stock worth $69,000 after buying an additional 3,308 shares during 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.