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

Wolfspeed, Inc. (NYSE:WOLF)’s share price gapped up before the market opened on Thursday . The stock had previously closed at $5.14, but opened at $5.39. Wolfspeed shares last traded at $5.70, with a volume of 4,756,830 shares traded.

Analyst Upgrades and Downgrades

WOLF has been the topic of a number of analyst reports. Roth Mkm dropped their price target on Wolfspeed from $25.00 to $20.00 and set a “buy” rating for the company in a research report on Thursday, November 7th. JPMorgan Chase & Co. dropped their price objective on Wolfspeed from $20.00 to $17.00 and set a “neutral” rating for the company in a research report on Thursday, November 7th. The Goldman Sachs Group reduced their target price on shares of Wolfspeed from $17.00 to $15.00 and set a “buy” rating on the stock in a report on Thursday, January 30th. Piper Sandler lowered their price target on shares of Wolfspeed from $18.00 to $10.00 and set an “overweight” rating for the company in a report on Thursday, January 30th. Finally, Bank of America reduced their price objective on shares of Wolfspeed from $9.50 to $6.00 and set an “underperform” rating on the stock in a research note on Thursday, January 30th. Three research analysts have rated the stock with a sell rating, ten have given a hold rating and four have issued a buy rating to the company. According to MarketBeat, the stock presently has an average rating of “Hold” and an average target price of $14.86.

Wolfspeed Stock Performance

The stock has a market cap of $720.92 million, a PE ratio of -0.74 and a beta of 1.43. 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 stock has a 50-day simple moving average of $6.77 and a 200-day simple moving average of $9.63.

Wolfspeed (NYSE:WOLF) last issued its earnings results on Wednesday, January 29th. The company reported ($1.10) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.90) by ($0.20). Wolfspeed had a negative return on equity of 70.84% and a negative net margin of 125.96%. Equities analysts predict that Wolfspeed, Inc. will post -4.15 earnings per share for the current fiscal year.

Insider Activity

In related news, Director Glenda Dorchak bought 3,592 shares of the stock in a transaction dated Friday, November 22nd. The stock was acquired at an average price of $8.33 per share, for a total transaction of $29,921.36. Following the completion of the purchase, the director now owns 18,688 shares in the company, valued at $155,671.04. This represents a 23.79 % increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Chairman Thomas H. Werner bought 37,500 shares of the company’s stock in a transaction that occurred on Wednesday, November 20th. The shares were bought at an average price of $6.53 per share, for a total transaction of $244,875.00. Following the completion of the acquisition, the chairman now owns 108,549 shares in the company, valued at approximately $708,824.97. This trade represents a 52.78 % increase in their position. The disclosure for this purchase can be found here. In the last 90 days, insiders have acquired 78,067 shares of company stock valued at $524,747. Company insiders own 0.84% of the company’s stock.

Institutional Trading of Wolfspeed

Several large investors have recently bought and sold shares of the company. Jones Financial Companies Lllp lifted its holdings in Wolfspeed by 1,240.6% in the 4th quarter. Jones Financial Companies Lllp now owns 3,834 shares of the company’s stock worth $26,000 after buying an additional 3,548 shares in the last quarter. Eastern Bank acquired a new stake in Wolfspeed during the 3rd quarter valued at approximately $27,000. R Squared Ltd acquired a new stake in Wolfspeed during the 4th quarter valued at approximately $28,000. Steward Partners Investment Advisory LLC increased its holdings in Wolfspeed by 192.0% during the 4th quarter. Steward Partners Investment Advisory LLC now owns 4,429 shares of the company’s stock worth $29,000 after purchasing an additional 2,912 shares during the last quarter. Finally, KBC Group NV raised its position in shares of Wolfspeed by 76.5% in the 4th quarter. KBC Group NV now owns 6,064 shares of the company’s stock valued at $40,000 after purchasing an additional 2,629 shares in the last quarter.

Wolfspeed Company Profile

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.