Wolfspeed Sees Unusually High Options Volume (NYSE:WOLF)

Key Points

• Wolfspeed saw unusually bearish options activity: Traders purchased 187,154 put options, roughly 709% above the typical volume of 23,122.
• The company reported a quarterly loss of $3.26 per share, beating the $3.78 consensus estimate, while revenue of $150.2 million was down 19% year over year.
• Analyst sentiment remains cautious, with a consensus “Hold” rating and an average price target of $25; Susquehanna recently cut its target from $40 to $30.

Wolfspeed, Inc. (NYSE:WOLF - Get Free Report) saw some unusual options trading on Tuesday. Traders bought 187,154 put options on the company. This represents an increase of approximately 709% compared to the typical volume of 23,122 put options.

Wolfspeed Price Performance

Shares of Wolfspeed stock opened at $23.86 on Tuesday. Wolfspeed has a 1-year low of $8.05 and a 1-year high of $80.82. The company's fifty day simple moving average is $46.98 and its 200-day simple moving average is $31.61. The stock has a market capitalization of $1.24 billion and a PE ratio of -2.26.

Wolfspeed (NYSE:WOLF - Get Free Report) last posted its quarterly earnings data on Tuesday, May 5th. The company reported ($3.26) EPS for the quarter, topping the consensus estimate of ($3.78) by $0.52. The company had revenue of $150.20 million during the quarter, compared to analysts' expectations of $150.00 million. During the same quarter last year, the company earned ($0.72) earnings per share. The company's revenue for the quarter was down 19.0% on a year-over-year basis.

Institutional Trading of Wolfspeed

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Renesas Electronics America Inc. purchased a new position in shares of Wolfspeed during the 4th quarter valued at about $293,400,000. UBS Group AG increased its holdings in Wolfspeed by 3,413.9% in the 4th 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. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its stake in Wolfspeed by 94.3% during the 1st 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 during the period. Goldman Sachs Group Inc. lifted its holdings in Wolfspeed by 176.7% during the first quarter. Goldman Sachs Group Inc. now owns 1,380,499 shares of the company's stock valued at $4,224,000 after purchasing an additional 881,603 shares in the last quarter. Finally, Calamos Advisors LLC bought a new position in shares of Wolfspeed in the fourth quarter worth approximately $12,451,000.

Analyst Ratings Changes

A number of research analysts have weighed in on the company. Susquehanna lowered their target price on Wolfspeed from $40.00 to $30.00 and set a "neutral" rating on the stock in a report on Tuesday, July 21st. Wall Street Zen upgraded Wolfspeed from a "strong sell" rating to a "sell" rating in a research note on Saturday, July 18th. Finally, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Wolfspeed in a research report on Wednesday, June 24th. One analyst has rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average target price of $25.00.

About Wolfspeed

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.