Wolfspeed (NYSE:WOLF) Trading 5.8% Higher - Should You Buy?

Key Points

• Wolfspeed shares were up 5.8% on Thursday, trading around $29.36 on about 528,178 shares, roughly 73% below its average daily volume.
• Analyst sentiment is largely negative — the consensus is a "Reduce" rating (one Buy, two Hold, three Sell) with an average price target of $14.33.
• The company reported a steep quarterly miss with EPS of ($6.11) versus a consensus of ($0.74) and revenue down 6.6% year-over-year.

Wolfspeed, Inc. (NYSE:WOLF - Get Free Report) shares were up 5.8% on Thursday . The stock traded as high as $28.50 and last traded at $29.3560. Approximately 528,178 shares changed hands during trading, a decline of 73% from the average daily volume of 1,947,861 shares. The stock had previously closed at $27.75.

Wall Street Analysts Forecast Growth

Several equities research analysts recently weighed in on WOLF shares. Weiss Ratings reiterated a "sell (d-)" rating on shares of Wolfspeed in a research note on Friday, March 27th. Wall Street Zen lowered shares of Wolfspeed from a "hold" rating to a "sell" rating in a research note on Saturday, February 7th. Susquehanna dropped their price objective on shares of Wolfspeed from $30.00 to $20.00 and set a "neutral" rating on the stock in a research note on Thursday, January 22nd. Piper Sandler reiterated an "overweight" rating and set a $20.00 price objective (up from $6.00) on shares of Wolfspeed in a research note on Thursday, February 5th. Finally, Zacks Research upgraded shares of Wolfspeed to a "hold" rating in a research note on Monday, February 9th. One analyst has rated the stock with a Buy rating, two have given a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat, the company has an average rating of "Reduce" and an average target price of $14.33.

Wolfspeed Stock Up 3.8%

The firm's 50 day simple moving average is $19.43 and its 200 day simple moving average is $20.61. The company has a market cap of $1.30 billion and a price-to-earnings ratio of -4.09.

Wolfspeed (NYSE:WOLF - Get Free Report) last announced 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 business posted ($0.95) EPS. The business's revenue was down 6.6% compared to the same quarter last year.

Institutional Investors Weigh In On Wolfspeed

Several large investors have recently made changes to their positions in the company. Summit Securities Group LLC increased its stake 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 during the period. Andar Capital Management HK Ltd acquired a new stake in shares of Wolfspeed in the third quarter valued at approximately $48,000. Capital Investment Advisory Services LLC increased its stake in shares of Wolfspeed by 13.3% during the fourth quarter. Capital Investment Advisory Services LLC now owns 15,174 shares of the company's stock valued at $264,000 after acquiring an additional 1,783 shares during the period. Eastern Bank acquired a new position in shares of Wolfspeed during the fourth quarter valued at approximately $46,000. Finally, Cinctive Capital Management LP acquired a new position in shares of Wolfspeed during the fourth quarter valued at approximately $176,000.

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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