Traders Purchase Large Volume of Wolfspeed Call Options (NYSE:WOLF)

Wolfspeed, Inc. (NYSE:WOLF) was the recipient of some unusual options trading activity on Thursday. Investors bought 21,674 call options on the stock. This represents an increase of 80% compared to the typical daily volume of 12,062 call options.

Wolfspeed Trading Down 14.3 %

Shares of WOLF stock traded down $3.74 during trading hours on Thursday, reaching $22.37. 9,501,657 shares of the stock were exchanged, compared to its average volume of 4,816,167. Wolfspeed has a 12-month low of $20.63 and a 12-month high of $70.42. The company has a current ratio of 5.13, a quick ratio of 4.58 and a debt-to-equity ratio of 4.50. The company’s 50-day moving average price is $26.62 and its 200-day moving average price is $32.17. The firm has a market capitalization of $2.81 billion, a price-to-earnings ratio of -3.76 and a beta of 1.64.

Wolfspeed (NYSE:WOLF) last released its quarterly earnings results on Wednesday, January 31st. The company reported ($0.69) EPS for the quarter, topping analysts’ consensus estimates of ($0.79) by $0.10. Wolfspeed had a negative net margin of 87.35% and a negative return on equity of 19.35%. The firm had revenue of $208.40 million during the quarter, compared to analysts’ expectations of $205.94 million. As a group, equities analysts anticipate that Wolfspeed will post -3.05 earnings per share for the current year.

Insider Activity

In other news, Director Darren R. Jackson acquired 10,000 shares of the firm’s stock in a transaction dated Friday, February 2nd. The shares were purchased at an average cost of $25.80 per share, for a total transaction of $258,000.00. Following the transaction, the director now directly owns 49,021 shares of the company’s stock, valued at $1,264,741.80. The purchase was disclosed in a legal filing with the SEC, which is available at the SEC website. Insiders own 0.62% of the company’s stock.

Hedge Funds Weigh In On Wolfspeed

A number of large investors have recently made changes to their positions in the company. TFO Wealth Partners LLC boosted its position in Wolfspeed by 57,400.0% in the 4th quarter. TFO Wealth Partners LLC now owns 575 shares of the company’s stock valued at $25,000 after buying an additional 574 shares during the period. Independence Bank of Kentucky lifted its position in shares of Wolfspeed by 97.0% in the 4th quarter. Independence Bank of Kentucky now owns 711 shares of the company’s stock worth $31,000 after purchasing an additional 350 shares during the period. Fifth Third Bancorp raised its stake in shares of Wolfspeed by 56.9% during the 1st quarter. Fifth Third Bancorp now owns 1,246 shares of the company’s stock worth $37,000 after acquiring an additional 452 shares in the last quarter. Rakuten Securities Inc. bought a new position in shares of Wolfspeed during the 4th quarter worth approximately $48,000. Finally, GAMMA Investing LLC bought a new position in shares of Wolfspeed during the 4th quarter worth approximately $56,000.

Analyst Upgrades and Downgrades

A number of analysts have issued reports on WOLF shares. JPMorgan Chase & Co. reduced their price target on shares of Wolfspeed from $43.00 to $35.00 and set a “neutral” rating on the stock in a report on Thursday, April 11th. William Blair downgraded shares of Wolfspeed from an “outperform” rating to a “market perform” rating in a report on Thursday. Mizuho reduced their price target on shares of Wolfspeed from $30.00 to $27.00 and set a “neutral” rating on the stock in a report on Thursday. Wells Fargo & Company restated an “equal weight” rating and issued a $30.00 target price (down from $55.00) on shares of Wolfspeed in a report on Wednesday, April 3rd. Finally, Susquehanna reduced their target price on shares of Wolfspeed from $25.00 to $23.00 and set a “neutral” rating on the stock in a report on Thursday. One research analyst has rated the stock with a sell rating, nine have assigned a hold rating and four have given a buy rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Hold” and an average price target of $39.00.

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.