Wolfspeed (NYSE:WOLF) Trading 6.1% Higher - Should You Buy?

Wolfspeed (NYSE:WOLF - Get Free Report)'s share price shot up 6.1% during mid-day trading on Friday . The stock traded as high as $1.55 and last traded at $1.48. 10,800,207 shares traded hands during trading, a decline of 74% from the average session volume of 42,054,488 shares. The stock had previously closed at $1.39.

Wall Street Analyst Weigh In

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

Wolfspeed Trading Up 6.8%

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 firm has a market capitalization of $231.11 million, a price-to-earnings ratio of -0.18 and a beta of 1.09. The company has a fifty day moving average price of $1.64 and a 200-day moving average price of $3.81.

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

Insiders Place Their Bets

In other Wolfspeed news, CFO Neill Reynolds sold 13,909 shares of the company's stock in a transaction that occurred on Monday, April 28th. The stock was sold at an average price of $3.99, for a total value of $55,496.91. Following the sale, the chief financial officer owned 195,257 shares in the company, valued at $779,075.43. This represents a 6.65% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Company insiders own 0.84% of the company's stock.

Hedge Funds Weigh In On Wolfspeed

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Vanguard Group Inc. increased its stake in shares of Wolfspeed by 1.9% in the 4th quarter. Vanguard Group Inc. now owns 15,924,290 shares of the company's stock valued at $106,056,000 after acquiring an additional 299,304 shares in the last quarter. Raiffeisen Bank International AG bought a new stake in Wolfspeed during the 4th quarter valued at $1,782,000. SG Americas Securities LLC grew its holdings in Wolfspeed by 422.0% during the 1st quarter. SG Americas Securities LLC now owns 533,965 shares of the company's stock valued at $1,634,000 after buying an additional 431,680 shares in the last quarter. Charles Schwab Investment Management Inc. lifted its stake in Wolfspeed by 38.6% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 1,207,157 shares of the company's stock worth $8,040,000 after purchasing an additional 335,966 shares in the last quarter. Finally, Stifel Financial Corp grew its holdings in shares of Wolfspeed by 413.0% during the fourth quarter. Stifel Financial Corp now owns 137,690 shares of the company's stock worth $917,000 after purchasing an additional 110,848 shares in 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.

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