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

Shares of Wolfspeed, Inc. (NYSE:WOLF) gapped up before the market opened on Monday . The stock had previously closed at $43.14, but opened at $51.25. Wolfspeed shares last traded at $47.8050, with a volume of 2,366,046 shares traded.

Analyst Upgrades and Downgrades

Several research firms have recently weighed in on WOLF. Wall Street Zen raised Wolfspeed from a “strong sell” rating to a “sell” rating in a research report on Saturday, May 9th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Wolfspeed in a research report on Friday, March 27th. One analyst has rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Hold” and an average target price of $20.00.

Wolfspeed Price Performance

The firm has a 50-day moving average of $44.46 and a 200 day moving average of $27.60. The stock has a market capitalization of $2.34 billion and a price-to-earnings ratio of -4.26.

Wolfspeed (NYSE:WOLF) last released its quarterly earnings data on Tuesday, May 5th. The company reported ($3.26) earnings per share (EPS) for the quarter, beating the consensus estimate of ($3.78) by $0.52. The business had revenue of $150.20 million during the quarter, compared to the consensus estimate of $150.00 million. Wolfspeed’s quarterly revenue was down 19.0% on a year-over-year basis. During the same quarter in the prior year, the company earned ($0.72) EPS.

Hedge Funds Weigh In On Wolfspeed

A number of large investors have recently made changes to their positions in WOLF. Goldman Sachs Group Inc. increased its stake in shares of Wolfspeed by 176.7% during the first quarter. Goldman Sachs Group Inc. now owns 1,380,499 shares of the company’s stock worth $4,224,000 after purchasing an additional 881,603 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its stake in shares of Wolfspeed by 94.3% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 1,868,741 shares of the company’s stock worth $5,718,000 after purchasing an additional 906,968 shares during the period. WINTON GROUP Ltd bought a new position in shares of Wolfspeed during the second quarter worth approximately $47,000. Ilex Capital Partners UK LLP increased its stake in shares of Wolfspeed by 499.1% during the second quarter. Ilex Capital Partners UK LLP now owns 665,697 shares of the company’s stock worth $265,000 after purchasing an additional 554,587 shares during the period. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. bought a new position in shares of Wolfspeed during the second quarter worth approximately $34,000.

Wolfspeed Company Profile

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.