Wolfspeed (NYSE:WOLF) Trading Up 10.3% – Should You Buy?

Shares of Wolfspeed, Inc. (NYSE:WOLF) were up 10.3% on Tuesday . The stock traded as high as $6.83 and last traded at $6.82. Approximately 4,439,411 shares traded hands during mid-day trading, a decline of 75% from the average daily volume of 17,687,512 shares. The stock had previously closed at $6.18.

Analyst Ratings Changes

Several research analysts have recently weighed in on WOLF shares. JPMorgan Chase & Co. lowered their price objective on Wolfspeed from $20.00 to $17.00 and set a “neutral” rating for the company in a research report on Thursday, November 7th. The Goldman Sachs Group lowered their price objective on Wolfspeed from $17.00 to $15.00 and set a “buy” rating for the company in a research report on Thursday, January 30th. Mizuho lowered their price objective on Wolfspeed from $10.00 to $6.00 and set an “underperform” rating for the company in a research report on Tuesday, November 19th. Susquehanna reduced their target price on Wolfspeed from $11.00 to $7.00 and set a “neutral” rating for the company in a research note on Wednesday, January 22nd. Finally, Bank of America reduced their target price on Wolfspeed from $9.50 to $6.00 and set an “underperform” rating for the company in a research note on Thursday, January 30th. Three research analysts have rated the stock with a sell rating, ten have issued a hold rating and four have given a buy rating to the company’s stock. According to data from MarketBeat.com, Wolfspeed has an average rating of “Hold” and a consensus price target of $14.86.

Wolfspeed Stock Performance

The company’s 50-day simple moving average is $6.51 and its 200 day simple moving average is $9.26. The company has a current ratio of 3.15, a quick ratio of 2.47 and a debt-to-equity ratio of 17.26. The stock has a market cap of $856.68 million, a P/E ratio of -0.87 and a beta of 1.43.

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

Insider Buying and Selling

In related news, Chairman Thomas H. Werner purchased 37,500 shares of the stock in a transaction that occurred on Wednesday, November 20th. The shares were bought at an average price of $6.53 per share, with a total value of $244,875.00. Following the acquisition, the chairman now owns 108,549 shares of the company’s stock, valued at $708,824.97. This trade represents a 52.78 % increase in their position. The purchase was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, Director Glenda Dorchak purchased 3,592 shares of the stock in a transaction that occurred on Friday, November 22nd. The stock was bought at an average cost of $8.33 per share, for a total transaction of $29,921.36. Following the acquisition, the director now directly owns 18,688 shares in the company, valued at $155,671.04. This trade represents a 23.79 % increase in their position. The disclosure for this purchase can be found here. In the last quarter, insiders have purchased 78,067 shares of company stock valued at $524,747. 0.84% of the stock is owned by company insiders.

Institutional Investors Weigh In On Wolfspeed

Hedge funds and other institutional investors have recently bought and sold shares of the business. Eastern Bank bought a new stake in Wolfspeed during the 3rd quarter valued at $27,000. Jones Financial Companies Lllp raised its holdings in Wolfspeed by 1,240.6% during the 4th quarter. Jones Financial Companies Lllp now owns 3,834 shares of the company’s stock valued at $26,000 after acquiring an additional 3,548 shares during the period. R Squared Ltd bought a new stake in Wolfspeed during the 4th quarter valued at $28,000. Steward Partners Investment Advisory LLC raised its holdings in Wolfspeed by 192.0% during the 4th quarter. Steward Partners Investment Advisory LLC now owns 4,429 shares of the company’s stock valued at $29,000 after acquiring an additional 2,912 shares during the period. Finally, KBC Group NV raised its holdings in Wolfspeed by 76.5% during the 4th quarter. KBC Group NV now owns 6,064 shares of the company’s stock valued at $40,000 after acquiring an additional 2,629 shares during the period.

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.