Wolfspeed (NYSE:WOLF) Shares Gap Up on Earnings Beat

Wolfspeed, Inc. (NYSE:WOLF)’s stock price gapped up before the market opened on Tuesday after the company announced better than expected quarterly earnings. The stock had previously closed at $35.94, but opened at $38.69. Wolfspeed shares last traded at $37.7950, with a volume of 1,551,664 shares trading hands.

The company reported ($3.26) earnings per share for the quarter, beating analysts’ consensus estimates of ($3.78) by $0.52. The firm had revenue of $150.20 million for the quarter, compared to the consensus estimate of $150.00 million. During the same period in the previous year, the business earned ($0.72) earnings per share. The firm’s revenue for the quarter was down 19.0% on a year-over-year basis.

Wall Street Analyst Weigh In

A number of analysts recently issued reports on WOLF shares. Piper Sandler restated an “overweight” rating and set a $20.00 price objective (up from $6.00) on shares of Wolfspeed in a report on Thursday, February 5th. Wall Street Zen downgraded shares of Wolfspeed from a “hold” rating to a “sell” rating in a report on Saturday, February 7th. Susquehanna decreased their price objective on shares of Wolfspeed from $30.00 to $20.00 and set a “neutral” rating for the company in a report on Thursday, January 22nd. Zacks Research upgraded shares of Wolfspeed to a “hold” rating in a report on Monday, February 9th. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of Wolfspeed in a report on Friday, March 27th. One investment analyst has 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 MarketBeat.com, Wolfspeed currently has an average rating of “Reduce” and an average price target of $14.33.

Hedge Funds Weigh In On Wolfspeed

Several large investors have recently modified their holdings of the business. Summit Securities Group LLC increased its stake in shares of Wolfspeed by 71.0% in the fourth quarter. Summit Securities Group LLC now owns 2,204 shares of the company’s stock worth $38,000 after purchasing an additional 915 shares in the last quarter. Andar Capital Management HK Ltd purchased a new position in shares of Wolfspeed in the third quarter worth about $48,000. Capital Investment Advisory Services LLC increased its stake in shares of Wolfspeed by 13.3% in the fourth quarter. Capital Investment Advisory Services LLC now owns 15,174 shares of the company’s stock worth $264,000 after purchasing an additional 1,783 shares in the last quarter. Eastern Bank purchased a new position in shares of Wolfspeed in the fourth quarter worth about $46,000. Finally, Cinctive Capital Management LP purchased a new position in shares of Wolfspeed in the fourth quarter worth about $176,000.

Wolfspeed Price Performance

The stock has a market cap of $2.04 billion and a PE ratio of -6.43. The firm’s 50 day moving average price is $21.97 and its two-hundred day moving average price is $20.63.

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.