Wolfspeed (NYSE:WOLF) Trading 9% Higher – Time to Buy?

Wolfspeed, Inc. (NYSE:WOLF)’s stock price shot up 9% on Monday . The company traded as high as $1.60 and last traded at $1.52. 5,428,301 shares changed hands during trading, a decline of 70% from the average session volume of 17,888,283 shares. The stock had previously closed at $1.39.

Wall Street Analysts Forecast Growth

WOLF has been the subject of several recent analyst reports. Citigroup reiterated a “sell” rating and issued a $3.00 price objective (down previously from $7.00) on shares of Wolfspeed in a research note on Friday, May 9th. The Goldman Sachs Group dropped their target price on shares of Wolfspeed from $15.00 to $8.00 and set a “buy” rating for the company in a report on Wednesday, April 2nd. JPMorgan Chase & Co. reiterated an “underweight” rating on shares of Wolfspeed in a research report on Friday, May 9th. Finally, Piper Sandler lowered their price target on Wolfspeed from $10.00 to $6.00 and set an “overweight” rating on the stock in a report on Friday, May 9th. Five investment analysts have rated the stock with a sell rating, six have given a hold rating and four have given a buy rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and an average target price of $11.15.

Wolfspeed Trading Up 4.7%

The company has a debt-to-equity ratio of 17.26, a current ratio of 3.15 and a quick ratio of 2.47. The firm has a market cap of $226.44 million, a price-to-earnings ratio of -0.19 and a beta of 1.29. The business’s 50-day moving average price is $2.65 and its two-hundred day moving average price is $5.23.

Wolfspeed (NYSE:WOLF) last announced its earnings results on Thursday, May 8th. The company reported ($0.72) earnings per share for the quarter, beating the consensus estimate of ($0.82) by $0.10. The business had revenue of $185.40 million during the quarter, compared to the consensus estimate of $190.03 million. Wolfspeed had a negative net margin of 125.96% and a negative return on equity of 70.84%. The business’s quarterly revenue was down 7.6% compared to the same quarter last year. During the same period in the prior year, the firm earned ($0.62) earnings per share. Equities analysts expect that Wolfspeed, Inc. will post -4 earnings per share for the current year.

Insider Transactions at Wolfspeed

In other news, CFO Neill Reynolds sold 13,909 shares of Wolfspeed stock in a transaction on Monday, April 28th. The stock was sold at an average price of $3.99, for a total transaction of $55,496.91. Following the transaction, the chief financial officer now directly owns 195,257 shares in the company, valued at approximately $779,075.43. This trade represents a 6.65% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Company insiders own 0.84% of the company’s stock.

Hedge Funds Weigh In On Wolfspeed

Several large investors have recently made changes to their positions in the business. Inspire Investing LLC boosted its holdings in Wolfspeed by 85.3% during the first quarter. Inspire Investing LLC now owns 112,872 shares of the company’s stock worth $345,000 after buying an additional 51,945 shares in the last quarter. Rhumbline Advisers raised its stake in Wolfspeed by 10.8% during the 1st quarter. Rhumbline Advisers now owns 342,505 shares of the company’s stock valued at $1,048,000 after purchasing an additional 33,361 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in shares of Wolfspeed by 94.3% in 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 valued at $5,718,000 after purchasing an additional 906,968 shares in the last quarter. Goldman Sachs Group Inc. boosted its position in shares of Wolfspeed by 176.7% in the first quarter. Goldman Sachs Group Inc. now owns 1,380,499 shares of the company’s stock worth $4,224,000 after buying an additional 881,603 shares during the period. Finally, MAI Capital Management raised its position in Wolfspeed by 894.9% during the first quarter. MAI Capital Management now owns 10,815 shares of the company’s stock valued at $33,000 after buying an additional 9,728 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.