Wolfspeed (NYSE:WOLF) Shares Gap Up – Should You Buy?

Shares of Wolfspeed, Inc. (NYSE:WOLF) gapped up before the market opened on Thursday . The stock had previously closed at $5.14, but opened at $5.39. Wolfspeed shares last traded at $5.70, with a volume of 4,756,830 shares traded.

Analyst Ratings Changes

Several equities analysts have commented on the stock. Susquehanna dropped their price target on shares of Wolfspeed from $11.00 to $7.00 and set a “neutral” rating on the stock in a research note on Wednesday, January 22nd. Piper Sandler dropped their target price on shares of Wolfspeed from $18.00 to $10.00 and set an “overweight” rating on the stock in a research report on Thursday, January 30th. JPMorgan Chase & Co. cut their price target on shares of Wolfspeed from $20.00 to $17.00 and set a “neutral” rating on the stock in a research note on Thursday, November 7th. Morgan Stanley upped their price objective on shares of Wolfspeed from $10.00 to $15.00 and gave the company an “equal weight” rating in a research note on Wednesday, October 16th. Finally, Canaccord Genuity Group dropped their price objective on Wolfspeed from $18.00 to $10.00 and set a “buy” rating on the stock in a report on Thursday, January 30th. Three analysts have rated the stock with a sell rating, ten have issued a hold rating and four have given a buy rating to the stock. According to MarketBeat, Wolfspeed currently has an average rating of “Hold” and a consensus target price of $14.86.

Wolfspeed Stock Performance

The company has a quick ratio of 2.47, a current ratio of 3.15 and a debt-to-equity ratio of 17.26. The stock has a fifty day moving average price of $6.77 and a 200-day moving average price of $9.63. The firm has a market cap of $720.92 million, a price-to-earnings ratio of -0.74 and a beta of 1.43.

Wolfspeed (NYSE:WOLF) last announced its quarterly earnings data on Wednesday, January 29th. The company reported ($1.10) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.90) by ($0.20). Wolfspeed had a negative net margin of 125.96% and a negative return on equity of 70.84%. On average, analysts expect that Wolfspeed, Inc. will post -4.15 earnings per share for the current fiscal year.

Insider Buying and Selling at Wolfspeed

In other Wolfspeed news, Director Glenda Dorchak bought 3,592 shares of Wolfspeed stock in a transaction on Friday, November 22nd. The stock was bought at an average price of $8.33 per share, with a total value of $29,921.36. Following the completion of the acquisition, the director now owns 18,688 shares in the company, valued at $155,671.04. The trade was a 23.79 % increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, Director Darren R. Jackson purchased 36,975 shares of the stock in a transaction dated Wednesday, November 20th. The shares were bought at an average cost of $6.76 per share, for a total transaction of $249,951.00. Following the completion of the purchase, the director now owns 85,996 shares in the company, valued at approximately $581,332.96. This trade represents a 75.43 % increase in their ownership of the stock. The disclosure for this purchase can be found here. In the last 90 days, insiders have acquired 78,067 shares of company stock valued at $524,747. 0.84% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Wolfspeed

Several institutional investors have recently modified their holdings of WOLF. Vanguard Group Inc. increased its stake in 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 purchasing an additional 299,304 shares in the last quarter. Primecap Management Co. CA increased its position in shares of Wolfspeed by 2.7% in the fourth quarter. Primecap Management Co. CA now owns 6,519,164 shares of the company’s stock valued at $43,418,000 after buying an additional 169,984 shares in the last quarter. Two Sigma Advisers LP raised its stake in shares of Wolfspeed by 813.6% during the 3rd quarter. Two Sigma Advisers LP now owns 2,458,600 shares of the company’s stock worth $23,848,000 after buying an additional 2,189,500 shares during the last quarter. Charles Schwab Investment Management Inc. boosted its position in shares of Wolfspeed by 38.6% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 1,207,157 shares of the company’s stock worth $8,040,000 after buying an additional 335,966 shares in the last quarter. Finally, Connor Clark & Lunn Investment Management Ltd. boosted its position in shares of Wolfspeed by 1,158.0% in the 3rd quarter. Connor Clark & Lunn Investment Management Ltd. now owns 833,201 shares of the company’s stock worth $8,082,000 after buying an additional 766,971 shares in the last quarter.

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.