Wolfspeed (NYSE:WOLF) Shares Up 7.5% – Should You Buy?

Shares of Wolfspeed, Inc. (NYSE:WOLF) rose 7.5% during trading on Monday . The company traded as high as $7.24 and last traded at $7.20. Approximately 4,327,523 shares were traded during mid-day trading, a decline of 37% from the average daily volume of 6,830,878 shares. The stock had previously closed at $6.70.

Analyst Upgrades and Downgrades

WOLF has been the topic of a number of recent analyst reports. Mizuho lowered Wolfspeed from a “neutral” rating to an “underperform” rating and cut their target price for the company from $17.00 to $8.00 in a research report on Thursday, October 3rd. The Goldman Sachs Group cut their price objective on shares of Wolfspeed from $22.00 to $19.00 and set a “buy” rating on the stock in a research report on Thursday, November 7th. JPMorgan Chase & Co. reduced their price objective on shares of Wolfspeed from $20.00 to $17.00 and set a “neutral” rating for the company in a report on Thursday, November 7th. Morgan Stanley lifted their target price 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, New Street Research lowered Wolfspeed from a “buy” rating to a “neutral” rating and set a $18.00 target price for the company. in a report on Wednesday, August 7th. Two investment analysts have rated the stock with a sell rating, ten have given a hold rating and four have assigned a buy rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus price target of $17.36.

Wolfspeed Price Performance

The firm’s 50 day simple moving average is $10.81 and its 200 day simple moving average is $17.34. The stock has a market capitalization of $896.52 million, a PE ratio of -1.22 and a beta of 1.46. The company has a debt-to-equity ratio of 9.82, a current ratio of 3.14 and a quick ratio of 2.54.

Wolfspeed (NYSE:WOLF) last issued its earnings results on Wednesday, August 21st. The company reported ($1.06) earnings per share for the quarter, missing analysts’ consensus estimates of ($1.03) by ($0.03). Wolfspeed had a negative return on equity of 49.86% and a negative net margin of 93.31%. The business had revenue of $200.70 million during the quarter, compared to analysts’ expectations of $201.11 million. As a group, equities analysts forecast that Wolfspeed, Inc. will post -4.13 EPS for the current fiscal year.

Hedge Funds Weigh In On Wolfspeed

Several hedge funds have recently added to or reduced their stakes in the company. Vanguard Group Inc. boosted its holdings in shares of Wolfspeed by 3.6% in the 1st quarter. Vanguard Group Inc. now owns 13,079,067 shares of the company’s stock valued at $385,832,000 after buying an additional 449,732 shares in the last quarter. Primecap Management Co. CA lifted its position in shares of Wolfspeed by 5.0% during the 3rd quarter. Primecap Management Co. CA now owns 6,349,180 shares of the company’s stock valued at $61,587,000 after buying an additional 303,870 shares in the last quarter. Two Sigma Advisers LP raised its position 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 purchasing an additional 2,189,500 shares during the last quarter. Bank of New York Mellon Corp increased its position in shares of Wolfspeed by 14.3% during the second quarter. Bank of New York Mellon Corp now owns 1,177,332 shares of the company’s stock worth $26,796,000 after purchasing an additional 147,527 shares in the last quarter. Finally, Samlyn Capital LLC lifted its stake in Wolfspeed by 51.6% in the 2nd quarter. Samlyn Capital LLC now owns 1,009,137 shares of the company’s stock worth $22,968,000 after purchasing an additional 343,277 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.