Wolfspeed (NYSE:WOLF) Stock Price Up 9% - Here's Why

Wolfspeed, Inc. (NYSE:WOLF - Get Free Report)'s stock price rose 9% on Monday . The stock traded as high as $1.60 and last traded at $1.52. Approximately 5,428,301 shares traded hands during mid-day trading, a decline of 70% from the average daily volume of 17,888,283 shares. The stock had previously closed at $1.39.

Analyst Ratings Changes

A number of equities analysts have commented on WOLF shares. Citigroup reaffirmed a "sell" rating and issued a $3.00 price target (down from $7.00) on shares of Wolfspeed in a research note on Friday, May 9th. 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 report on Wednesday, April 2nd. JPMorgan Chase & Co. reiterated an "underweight" rating on shares of Wolfspeed in a research note on Friday, May 9th. Finally, Piper Sandler dropped their target price on Wolfspeed from $10.00 to $6.00 and set an "overweight" rating on the stock in a report on Friday, May 9th. Five investment analysts have rated the stock with a sell rating, six have given a hold rating and four have given a buy rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of "Hold" and a consensus price target of $11.15.

Wolfspeed Stock Performance

The company has a market cap of $226.44 million, a P/E ratio of -0.19 and a beta of 1.29. The business has a fifty day simple moving average of $2.62 and a two-hundred day simple moving average of $5.18. The company has a quick ratio of 2.47, a current ratio of 3.15 and a debt-to-equity ratio of 17.26.

Wolfspeed (NYSE:WOLF - Get Free Report) last announced its quarterly earnings results on Thursday, May 8th. The company reported ($0.72) earnings per share for the quarter, topping the consensus estimate of ($0.82) by $0.10. The company had revenue of $185.40 million for the quarter, compared to analysts' expectations of $190.03 million. Wolfspeed had a negative net margin of 125.96% and a negative return on equity of 70.84%. Wolfspeed's quarterly revenue was down 7.6% on a year-over-year basis. During the same quarter in the previous year, the business posted ($0.62) earnings per share. On average, sell-side analysts anticipate that Wolfspeed, Inc. 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 business's stock in a transaction dated Monday, April 28th. The shares were sold at an average price of $3.99, for a total value of $55,496.91. Following the completion of the transaction, the chief financial officer now directly owns 195,257 shares in the company, valued at approximately $779,075.43. The trade was a 6.65% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Company insiders own 0.84% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the company. Jones Financial Companies Lllp boosted its position in Wolfspeed by 1,240.6% in the fourth quarter. Jones Financial Companies Lllp now owns 3,834 shares of the company's stock valued at $26,000 after buying an additional 3,548 shares during the last quarter. Steward Partners Investment Advisory LLC grew its holdings in Wolfspeed by 192.0% during the fourth quarter. Steward Partners Investment Advisory LLC now owns 4,429 shares of the company's stock worth $29,000 after acquiring an additional 2,912 shares during the period. KBC Group NV grew its holdings in Wolfspeed by 76.5% during the fourth quarter. KBC Group NV now owns 6,064 shares of the company's stock worth $40,000 after acquiring an additional 2,629 shares during the period. Allworth Financial LP grew its holdings in Wolfspeed by 38.1% during the fourth quarter. Allworth Financial LP now owns 7,060 shares of the company's stock worth $44,000 after acquiring an additional 1,949 shares during the period. Finally, Sterling Capital Management LLC grew its holdings in Wolfspeed by 51.4% during the fourth quarter. Sterling Capital Management LLC now owns 7,463 shares of the company's stock worth $50,000 after acquiring an additional 2,533 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.