Wolfspeed (NYSE:WOLF) Stock Price Up 8.6% - Still a Buy?

Wolfspeed (NYSE:WOLF - Get Free Report)'s stock price was up 8.6% on Monday . The company traded as high as $1.64 and last traded at $1.45. Approximately 47,946,881 shares traded hands during trading, an increase of 75% from the average daily volume of 27,427,698 shares. The stock had previously closed at $1.33.

Wall Street Analyst Weigh In

A number of analysts have recently weighed in on WOLF shares. Piper Sandler cut their target price on Wolfspeed from $10.00 to $6.00 and set an "overweight" rating for the company in a research report on Friday, May 9th. The Goldman Sachs Group cut their target price on Wolfspeed from $15.00 to $8.00 and set a "buy" rating for the company in a research report on Wednesday, April 2nd. Citigroup reiterated 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, JPMorgan Chase & Co. restated an "underweight" rating on shares of Wolfspeed in a research report 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. Based on data from MarketBeat.com, the company has a consensus rating of "Hold" and a consensus target price of $11.15.

Wolfspeed Stock Down 7.0%

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 stock has a market capitalization of $218.66 million, a P/E ratio of -0.17 and a beta of 1.09. The firm has a 50-day simple moving average of $1.70 and a 200 day simple moving average of $3.85.

Wolfspeed (NYSE:WOLF - Get Free Report) last issued its quarterly earnings data on Thursday, May 8th. The company reported ($0.72) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.82) by $0.10. Wolfspeed had a negative return on equity of 103.97% and a negative net margin of 146.43%. The company had revenue of $185.40 million during the quarter, compared to the consensus estimate of $190.03 million. During the same period last year, the company earned ($0.62) earnings per share. The firm's revenue was down 7.6% compared to the same quarter last year. On average, equities research analysts forecast that Wolfspeed will post -4 EPS for the current year.

Insider Activity

In other news, CFO Neill Reynolds sold 13,909 shares of the firm's stock in a transaction dated Monday, April 28th. The stock was 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 directly 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 legal filing with the Securities & Exchange Commission, which is available through the SEC website. 0.84% of the stock is owned by company insiders.

Institutional Investors Weigh In On Wolfspeed

Several large investors have recently added to or reduced their stakes in the business. Sterling Capital Management LLC grew its stake in Wolfspeed by 51.4% in the fourth quarter. Sterling Capital Management LLC now owns 7,463 shares of the company's stock valued at $50,000 after acquiring an additional 2,533 shares during the period. Ground Swell Capital LLC lifted its holdings in Wolfspeed by 25.6% during the fourth quarter. Ground Swell Capital LLC now owns 12,827 shares of the company's stock worth $85,000 after acquiring an additional 2,611 shares during the period. Steward Partners Investment Advisory LLC lifted its holdings 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 acquiring an additional 2,912 shares during the period. Victory Capital Management Inc. lifted its holdings in Wolfspeed by 12.4% during the first quarter. Victory Capital Management Inc. now owns 26,562 shares of the company's stock worth $81,000 after acquiring an additional 2,922 shares during the period. Finally, Mutual of America Capital Management LLC raised its stake in shares of Wolfspeed by 17.1% in the first quarter. Mutual of America Capital Management LLC now owns 22,653 shares of the company's stock valued at $69,000 after buying an additional 3,308 shares during the period.

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.