Wolfspeed (NYSE:WOLF) Trading Up 1.5% - 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) shares traded up 1.5% during trading on Monday . The stock traded as high as $1.71 and last traded at $1.67. 6,523,045 shares were traded during trading, a decline of 85% from the average session volume of 42,340,977 shares. The stock had previously closed at $1.64.

Wall Street Analysts Forecast Growth

WOLF has been the subject of a number of research analyst reports. Piper Sandler lowered their target price on Wolfspeed from $10.00 to $6.00 and set an "overweight" rating for the company in a report on Friday, May 9th. Citigroup reiterated a "sell" rating and set a $3.00 target price (down previously from $7.00) on shares of Wolfspeed in a research note on Friday, May 9th. JPMorgan Chase & Co. reaffirmed an "underweight" rating on shares of Wolfspeed in a research report on Friday, May 9th. Finally, The Goldman Sachs Group reduced their price target on shares of 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 issued a hold rating and four have issued a buy rating to the company. According to MarketBeat, the company currently has an average rating of "Hold" and a consensus target price of $11.15.

Wolfspeed Trading Up 2.1%

The firm has a market cap of $260.68 million, a PE ratio of -0.20 and a beta of 1.09. The company's 50-day moving average is $1.39 and its 200 day moving average is $3.56. The company has a current ratio of 4.64, a quick ratio of 3.90 and a debt-to-equity ratio of 30.65.

Wolfspeed (NYSE:WOLF - Get Free Report) last issued its earnings results on Thursday, May 8th. The company reported ($0.72) earnings per share (EPS) 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 company had revenue of $185.40 million during the quarter, compared to analyst estimates of $190.03 million. During the same quarter last year, the business posted ($0.62) EPS. The company's revenue for the quarter was down 7.6% on a year-over-year basis. As a group, sell-side analysts predict that Wolfspeed will post -4 EPS for the current year.

Institutional Investors Weigh In On Wolfspeed

Several institutional investors and hedge funds have recently bought and sold shares of the business. Sterling Capital Management LLC grew its holdings in shares of 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 buying an additional 2,533 shares in the last quarter. N.E.W. Advisory Services LLC acquired a new position in shares of Wolfspeed during the 1st quarter worth approximately $28,000. GABELLI & Co INVESTMENT ADVISERS INC. acquired a new stake in shares of Wolfspeed during the 4th quarter worth approximately $67,000. One68 Global Capital LLC bought a new position in Wolfspeed in the 4th quarter valued at approximately $67,000. Finally, Beacon Capital Management LLC acquired a new position in Wolfspeed in the 1st quarter valued at approximately $31,000.

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.

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