Wolfspeed (NYSE:WOLF) Trading 6.3% Higher - Still a Buy?

Key Points

• Wolfspeed shares rose 6.3% during mid-day trading, reaching a price of $1.61, despite a significant decline in trading volume compared to averages.
• Analysts have mixed ratings on Wolfspeed, with five firms issuing a sell rating, while four analysts maintain a buy rating, indicating uncertainty about the company's future performance.
• The company reported an EPS of ($0.72) for the last quarter, exceeding expectations but facing a drop in revenue compared to the previous year, with a current average price target set at $11.15.

Shares of Wolfspeed (NYSE:WOLF - Get Free Report) were up 6.3% during mid-day trading on Tuesday . The company traded as high as $1.62 and last traded at $1.61. Approximately 4,983,587 shares changed hands during trading, a decline of 88% from the average daily volume of 40,996,570 shares. The stock had previously closed at $1.51.

Analyst Ratings Changes

Several analysts recently commented on WOLF shares. Piper Sandler dropped their price target on Wolfspeed from $10.00 to $6.00 and set an "overweight" rating for the company in a research report on Friday, May 9th. JPMorgan Chase & Co. reissued an "underweight" rating on shares of Wolfspeed in a research note on Friday, May 9th. Finally, Citigroup reaffirmed a "sell" rating and issued a $3.00 price target (down previously from $7.00) 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 assigned a buy rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and an average target price of $11.15.

Wolfspeed Trading Down 1.0%

The firm has a market capitalization of $232.67 million, a price-to-earnings ratio of -0.18 and a beta of 1.23. The business has a 50-day moving average of $1.33 and a two-hundred day moving average of $3.38. The company has a quick ratio of 3.90, a current ratio of 4.64 and a debt-to-equity ratio of 30.65.

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

Institutional Trading of Wolfspeed

A number of institutional investors have recently modified their holdings of the company. Vanguard Group Inc. increased its stake in Wolfspeed by 18.8% in the first quarter. Vanguard Group Inc. now owns 18,913,793 shares of the company's stock valued at $57,876,000 after acquiring an additional 2,989,503 shares during the last quarter. Primecap Management Co. CA lifted its holdings in shares of Wolfspeed by 2.2% during the first quarter. Primecap Management Co. CA now owns 6,665,270 shares of the company's stock worth $20,396,000 after purchasing an additional 146,106 shares during the period. Neuberger Berman Group LLC lifted its holdings in shares of Wolfspeed by 72.7% during the first quarter. Neuberger Berman Group LLC now owns 4,329,584 shares of the company's stock worth $13,723,000 after purchasing an additional 1,822,958 shares during the period. Shah Capital Management bought a new position in Wolfspeed during the first quarter worth $6,586,000. Finally, Frontier Capital Management Co. LLC raised its stake in Wolfspeed by 94.2% during the fourth quarter. Frontier Capital Management Co. LLC now owns 2,050,778 shares of the company's stock worth $13,658,000 after buying an additional 995,020 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.

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