Wolfspeed (NYSE:WOLF) Trading 1.5% Higher - Still a Buy?

Key Points

• Wolfspeed's stock (NYSE:WOLF) rose by 1.5% to $1.67, with a significant drop in trading volume, indicating reduced investor activity compared to its average session.
• Recent analyst reports show mixed opinions, with target price changes ranging from $3.00 to $8.00 and an average rating of "Hold," highlighting uncertainty about the stock's potential.
• The company's latest earnings report showed a loss of $0.72 EPS but exceeded analysts' expectations, although revenue fell 7.6% year-over-year, suggesting ongoing financial challenges.

Wolfspeed (NYSE:WOLF - Get Free Report)'s stock price was up 1.5% on Monday . The company traded as high as $1.71 and last traded at $1.67. Approximately 6,523,045 shares were traded during trading, a decline of 85% from the average daily volume of 42,340,977 shares. The stock had previously closed at $1.64.

Wall Street Analyst Weigh In

A number of analysts have weighed in on WOLF shares. Citigroup restated a "sell" rating and set a $3.00 price objective (down from $7.00) on shares of Wolfspeed in a research note on Friday, May 9th. The Goldman Sachs Group dropped their price target on shares of Wolfspeed from $15.00 to $8.00 and set a "buy" rating on the stock in a report on Wednesday, April 2nd. JPMorgan Chase & Co. reaffirmed an "underweight" rating on shares of Wolfspeed in a report on Friday, May 9th. Finally, Piper Sandler dropped 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. Five research analysts have rated the stock with a sell rating, five have given a hold rating and four have assigned a buy rating to the stock. According to MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus price target of $11.15.

Wolfspeed Trading Down 1.5%

The company has a quick ratio of 3.90, a current ratio of 4.64 and a debt-to-equity ratio of 30.65. The company has a market cap of $232.98 million, a PE ratio of -0.18 and a beta of 1.09. The stock's 50 day moving average is $1.32 and its 200-day moving average is $3.48.

Wolfspeed (NYSE:WOLF - Get Free Report) last posted its quarterly earnings data on Thursday, May 8th. The company reported ($0.72) earnings per share for the quarter, beating analysts' consensus estimates 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 analysts' expectations of $190.03 million. During the same quarter in the previous year, the business posted ($0.62) earnings per share. The business's revenue was down 7.6% compared to the same quarter last year. As a group, sell-side analysts anticipate that Wolfspeed will post -4 EPS for the current year.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in WOLF. Raymond James Financial Inc. bought a new position in Wolfspeed during the 4th quarter worth about $109,000. Commonwealth Equity Services LLC boosted its holdings in shares of Wolfspeed by 170.2% in the 4th quarter. Commonwealth Equity Services LLC now owns 36,757 shares of the company's stock valued at $245,000 after buying an additional 23,154 shares in the last quarter. KLP Kapitalforvaltning AS bought a new stake in shares of Wolfspeed in the 4th quarter valued at about $153,000. Vanguard Group Inc. boosted its holdings 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 buying an additional 299,304 shares in the last quarter. Finally, CIBC Private Wealth Group LLC boosted its holdings in shares of Wolfspeed by 96.7% in the 4th quarter. CIBC Private Wealth Group LLC now owns 170,753 shares of the company's stock valued at $1,137,000 after buying an additional 83,939 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.