Wolfspeed (NYSE:WOLF) Trading Up 8.4% - Should You Buy?

Key Points

• Shares jumped 8.4% intraday to about $25.90 from $23.90, but trading volume was very light (~107,498 shares vs. a 1.68M average, a ~94% decline).
• Analyst sentiment is negative overall: the MarketBeat consensus is a "Reduce" rating with an average price target of $14.33, and analyst opinions range from Buy to Sell.
• Fundamentals remain weak—Wolfspeed reported a steep quarterly loss (EPS -$6.11 vs. -$0.74 expected) and revenue down 6.6%—yet several large institutions have recently built or boosted sizable stakes (e.g., Renesas ~$293M, Capital Research ~$79M).

Shares of Wolfspeed, Inc. (NYSE:WOLF - Get Free Report) were up 8.4% during mid-day trading on Thursday . The stock traded as high as $24.89 and last traded at $25.8980. Approximately 107,498 shares changed hands during trading, a decline of 94% from the average daily volume of 1,683,984 shares. The stock had previously closed at $23.90.

Wall Street Analyst Weigh In

Several equities research analysts have recently issued reports on WOLF shares. Susquehanna decreased their price target on shares of Wolfspeed from $30.00 to $20.00 and set a "neutral" rating for the company in a research note on Thursday, January 22nd. Piper Sandler restated an "overweight" rating and set a $20.00 price target (up from $6.00) on shares of Wolfspeed in a research note on Thursday, February 5th. Zacks Research upgraded shares of Wolfspeed to a "hold" rating in a research note on Monday, February 9th. Weiss Ratings restated a "sell (d-)" rating on shares of Wolfspeed in a research note on Friday, March 27th. Finally, Wall Street Zen lowered shares of Wolfspeed from a "hold" rating to a "sell" rating in a research note on Saturday, February 7th. One equities research analyst has rated the stock with a Buy rating, two have given a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat, Wolfspeed has a consensus rating of "Reduce" and an average target price of $14.33.

Wolfspeed Stock Up 13.2%

The firm's 50-day moving average is $18.41 and its 200-day moving average is $20.57. The company has a market cap of $1.22 billion and a PE ratio of -3.85.

Wolfspeed (NYSE:WOLF - Get Free Report) last announced its quarterly earnings results on Wednesday, January 28th. The company reported ($6.11) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.74) by ($5.37). During the same quarter in the prior year, the firm posted ($0.95) EPS. The business's quarterly revenue was down 6.6% compared to the same quarter last year. As a group, equities research analysts anticipate that Wolfspeed, Inc. will post -4 EPS for the current fiscal year.

Hedge Funds Weigh In On Wolfspeed

Several hedge funds and other institutional investors have recently modified their holdings of WOLF. Renesas Electronics America Inc. bought a new stake in Wolfspeed during the fourth quarter worth about $293,400,000. Capital Research Global Investors bought a new stake in Wolfspeed during the third quarter worth about $79,426,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in Wolfspeed by 94.3% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 1,868,741 shares of the company's stock worth $5,718,000 after acquiring an additional 906,968 shares in the last quarter. Goldman Sachs Group Inc. boosted its stake in Wolfspeed by 176.7% during the first quarter. Goldman Sachs Group Inc. now owns 1,380,499 shares of the company's stock worth $4,224,000 after acquiring an additional 881,603 shares in the last quarter. Finally, UBS Group AG boosted its stake in Wolfspeed by 3,413.9% during the fourth quarter. UBS Group AG now owns 1,269,548 shares of the company's stock worth $22,103,000 after acquiring an additional 1,233,419 shares in the last quarter.

Wolfspeed Company Profile

Wolfspeed, Inc NYSE: WOLF is a leading developer and manufacturer of silicon carbide (SiC) and gallium nitride (GaN) semiconductor materials and devices. The company's product portfolio addresses high-growth markets such as electric vehicles, renewable energy, fast-charging infrastructure, aerospace and defense, and telecommunications. By leveraging proprietary materials and device designs, Wolfspeed delivers solutions that offer improved energy efficiency, higher power density and greater thermal performance compared to conventional silicon-based semiconductors.

Founded as part of Cree, Inc and spun off to form an independent public company in October 2021, Wolfspeed traces its roots to the mid-1980s when it pioneered the commercial use of wide-bandgap semiconductor technology.

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