Wolfspeed (NYSE:WOLF) Trading 17.7% Higher - Still a Buy?

Key Points

• Wolfspeed shares surged 17.7% to about $23.62 in heavy trading, though the stock remains well below its 50-day and 200-day moving averages.
• Analysts remain cautious: Wolfspeed has a consensus “Hold” rating and an average price target of $25, with recent rating actions including a price-target cut by Susquehanna and a “sell” rating from Weiss Ratings.
• The company beat quarterly EPS expectations, reporting a loss of $3.26 per share versus the expected $3.78 loss, but revenue fell 19% year over year to $150.2 million.

Wolfspeed, Inc. (NYSE:WOLF - Get Free Report)'s stock price traded up 17.7% during mid-day trading on Thursday . The company traded as high as $24.00 and last traded at $23.6150. 4,477,063 shares changed hands during trading, an increase of 1% from the average daily volume of 4,447,717 shares. The stock had previously closed at $20.06.

Analyst Ratings Changes

A number of equities research analysts have weighed in on WOLF shares. Wall Street Zen raised shares of Wolfspeed from a "strong sell" rating to a "sell" rating in a report on Saturday, July 18th. Susquehanna lowered their price objective on shares of Wolfspeed from $40.00 to $30.00 and set a "neutral" rating on the stock in a research note on Tuesday, July 21st. Finally, Weiss Ratings reiterated a "sell (d-)" rating on shares of Wolfspeed in a report on Wednesday, June 24th. One investment analyst has rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Hold" and an average price target of $25.00.

Wolfspeed Trading Up 18.5%

The stock has a fifty day moving average of $45.47 and a 200-day moving average of $31.64. The firm has a market capitalization of $1.24 billion and a price-to-earnings ratio of -2.23.

Wolfspeed (NYSE:WOLF - Get Free Report) last announced its earnings results on Tuesday, May 5th. The company reported ($3.26) EPS for the quarter, beating the consensus estimate of ($3.78) by $0.52. The company had revenue of $150.20 million for the quarter, compared to analysts' expectations of $150.00 million. The company's revenue for the quarter was down 19.0% on a year-over-year basis. During the same period in the prior year, the company earned ($0.72) earnings per share.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in WOLF. Canada Pension Plan Investment Board purchased a new stake in shares of Wolfspeed in the 2nd quarter valued at approximately $34,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. acquired a new stake in Wolfspeed during the 2nd quarter valued at $34,000. Summit Securities Group LLC lifted its holdings in shares of Wolfspeed by 71.0% in the fourth quarter. Summit Securities Group LLC now owns 2,204 shares of the company's stock valued at $38,000 after purchasing an additional 915 shares in the last quarter. Marex Group plc acquired a new stake in shares of Wolfspeed in the second quarter worth $44,000. Finally, Eastern Bank acquired a new stake in shares of Wolfspeed in the fourth quarter worth $46,000.

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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