Wolfspeed (NYSE:WOLF) Stock Price Up 6.3% - Time to 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.

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

Analysts Set New Price Targets

Several equities analysts have recently weighed in on WOLF shares. Piper Sandler reduced 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. Citigroup reiterated a "sell" rating and set a $3.00 price target (down from $7.00) on shares of Wolfspeed in a research report on Friday, May 9th. Finally, JPMorgan Chase & Co. reaffirmed an "underweight" rating on shares of Wolfspeed in a research note on Friday, May 9th. Five analysts have rated the stock with a sell rating, four have given a hold rating and four have given a buy rating to the company's stock. According to data from MarketBeat.com, the company currently has an average rating of "Hold" and an average target price of $10.58.

Wolfspeed Stock Performance

The company has a 50 day simple moving average of $1.33 and a 200-day simple moving average of $3.32. 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 cap of $231.11 million, a P/E ratio of -0.18 and a beta of 1.23.

Wolfspeed (NYSE:WOLF - Get Free Report) last released its earnings results on Thursday, May 8th. The company reported ($0.72) earnings per share for the quarter, topping analysts' consensus estimates of ($0.82) by $0.10. The company had revenue of $185.40 million during 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 quarterly revenue was down 7.6% compared to the same quarter last year. During the same quarter in the previous year, the company posted ($0.62) EPS. On average, equities analysts expect that Wolfspeed will post -4 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Wolfspeed

Several institutional investors and hedge funds have recently made changes to their positions in the business. Sterling Capital Management LLC boosted its position in Wolfspeed by 51.4% during the fourth quarter. Sterling Capital Management LLC now owns 7,463 shares of the company's stock valued at $50,000 after buying an additional 2,533 shares during the period. Ground Swell Capital LLC boosted its holdings in Wolfspeed by 25.6% during the 4th quarter. Ground Swell Capital LLC now owns 12,827 shares of the company's stock valued at $85,000 after acquiring an additional 2,611 shares during the period. Victory Capital Management Inc. boosted its holdings in Wolfspeed by 12.4% during the 1st quarter. Victory Capital Management Inc. now owns 26,562 shares of the company's stock valued at $81,000 after acquiring an additional 2,922 shares during the period. Mutual of America Capital Management LLC grew its position in Wolfspeed by 17.1% during the 1st quarter. Mutual of America Capital Management LLC now owns 22,653 shares of the company's stock worth $69,000 after acquiring an additional 3,308 shares during the last quarter. Finally, SBI Securities Co. Ltd. increased its stake in Wolfspeed by 39.7% in the 1st quarter. SBI Securities Co. Ltd. now owns 15,592 shares of the company's stock worth $48,000 after purchasing an additional 4,429 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.