Wolfspeed (NYSE:WOLF) Shares Up 8.7% – Should You Buy?

Wolfspeed, Inc. (NYSE:WOLF) shares shot up 8.7% on Wednesday . The stock traded as high as $18.18 and last traded at $18.1150. 779,834 shares changed hands during mid-day trading, a decline of 54% from the average session volume of 1,682,340 shares. The stock had previously closed at $16.67.

Wall Street Analyst Weigh In

A number of research firms recently issued reports on WOLF. Piper Sandler reissued an “overweight” rating and set a $20.00 target price (up from $6.00) on shares of Wolfspeed in a research report on Thursday, February 5th. Zacks Research raised shares of Wolfspeed to a “hold” rating in a research note on Monday, February 9th. Weiss Ratings reissued a “sell (d-)” rating on shares of Wolfspeed in a research report on Monday, December 29th. Susquehanna reduced their price objective on Wolfspeed from $30.00 to $20.00 and set a “neutral” rating on the stock in a research note on Thursday, January 22nd. Finally, Wall Street Zen downgraded Wolfspeed from a “hold” rating to a “sell” rating in a research report on Saturday, February 7th. Two equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat.com, Wolfspeed currently has a consensus rating of “Reduce” and an average price target of $12.75.

Wolfspeed Price Performance

The firm has a market capitalization of $832.50 million and a price-to-earnings ratio of -2.62. The business’s 50-day moving average price is $18.11 and its 200 day moving average price is $18.76.

Wolfspeed (NYSE:WOLF) last released its quarterly earnings results on Wednesday, January 28th. The company reported ($6.11) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.74) by ($5.37). During the same period in the previous year, the firm earned ($0.95) EPS. The company’s revenue for the quarter was down 6.6% compared to the same quarter last year. As a group, sell-side analysts expect that Wolfspeed, Inc. will post -4 earnings per share for the current year.

Institutional Trading of Wolfspeed

Hedge funds and other institutional investors have recently modified their holdings of the business. Renesas Electronics America Inc. acquired a new position in shares of Wolfspeed in the fourth quarter worth about $293,400,000. Capital Research Global Investors acquired a new stake in Wolfspeed during the 3rd quarter valued at approximately $79,426,000. Two Seas Capital LP purchased a new stake in Wolfspeed during the 2nd quarter worth approximately $962,000. UBS Group AG increased its holdings in Wolfspeed by 3,413.9% during the 4th quarter. UBS Group AG now owns 1,269,548 shares of the company’s stock worth $22,103,000 after purchasing an additional 1,233,419 shares during the last quarter. Finally, XTX Topco Ltd raised its position in shares of Wolfspeed by 4,954.1% in the 2nd quarter. XTX Topco Ltd now owns 982,770 shares of the company’s stock valued at $392,000 after purchasing an additional 963,325 shares in the last quarter.

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.