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

Wolfspeed, Inc. (NYSE:WOLF)’s stock price gapped up prior to trading on Tuesday . The stock had previously closed at $4.91, but opened at $5.17. Wolfspeed shares last traded at $5.00, with a volume of 2,189,798 shares trading hands.

Analyst Ratings Changes

WOLF has been the topic of a number of research analyst reports. Morgan Stanley increased their price target on Wolfspeed from $10.00 to $15.00 and gave the company an “equal weight” rating in a research note on Wednesday, October 16th. Piper Sandler reaffirmed an “overweight” rating and issued a $18.00 target price (down previously from $20.00) on shares of Wolfspeed in a research report on Thursday, November 7th. Canaccord Genuity Group reduced their price target on Wolfspeed from $25.00 to $18.00 and set a “buy” rating for the company in a research note on Thursday, November 7th. StockNews.com raised shares of Wolfspeed to a “sell” rating in a report on Monday, January 6th. Finally, Mizuho cut their price objective on shares of Wolfspeed from $10.00 to $6.00 and set an “underperform” rating for the company in a research report on Tuesday, November 19th. Three investment analysts have rated the stock with a sell rating, ten have assigned a hold rating and four have assigned a buy rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and an average price target of $17.21.

Wolfspeed Trading Up 1.9 %

The company has a debt-to-equity ratio of 9.82, a quick ratio of 2.54 and a current ratio of 3.14. The firm has a market capitalization of $869.71 million, a P/E ratio of -1.14 and a beta of 1.43. The firm has a 50 day simple moving average of $7.80 and a two-hundred day simple moving average of $11.98.

Insider Buying and Selling

In other Wolfspeed news, Chairman Thomas H. Werner bought 37,500 shares of the business’s stock in a transaction on Wednesday, November 20th. The stock was purchased at an average price of $6.53 per share, for a total transaction of $244,875.00. Following the completion of the transaction, the chairman now directly owns 108,549 shares of the company’s stock, valued at $708,824.97. This trade represents a 52.78 % increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, Director Darren R. Jackson purchased 36,975 shares of the stock in a transaction dated Wednesday, November 20th. The stock was acquired at an average cost of $6.76 per share, for a total transaction of $249,951.00. Following the transaction, the director now owns 85,996 shares of the company’s stock, valued at approximately $581,332.96. This trade represents a 75.43 % increase in their ownership of the stock. The disclosure for this purchase can be found here. In the last ninety days, insiders have purchased 78,067 shares of company stock valued at $524,747. 0.84% of the stock is owned by insiders.

Hedge Funds Weigh In On Wolfspeed

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Arkadios Wealth Advisors purchased a new position in shares of Wolfspeed in the 4th quarter worth about $67,000. GAMMA Investing LLC raised its position in Wolfspeed by 66.6% during the 4th quarter. GAMMA Investing LLC now owns 7,569 shares of the company’s stock valued at $50,000 after purchasing an additional 3,025 shares during the last quarter. Principal Financial Group Inc. raised its position in Wolfspeed by 41.4% during the 3rd quarter. Principal Financial Group Inc. now owns 592,599 shares of the company’s stock valued at $5,748,000 after purchasing an additional 173,409 shares during the last quarter. Virtu Financial LLC raised its position in shares of Wolfspeed by 160.8% in the 3rd quarter. Virtu Financial LLC now owns 58,560 shares of the company’s stock worth $568,000 after acquiring an additional 36,105 shares in the last quarter. Finally, Aequim Alternative Investments LP grew its stake in shares of Wolfspeed by 20.2% in the 3rd quarter. Aequim Alternative Investments LP now owns 196,836 shares of the company’s stock worth $1,909,000 after buying an additional 33,036 shares during 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.