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

Wolfspeed, Inc. (NYSE:WOLF - Get Free Report) gapped up before the market opened 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 Upgrades and Downgrades

Several brokerages have issued reports on WOLF. Roth Mkm cut their target price on shares of Wolfspeed from $25.00 to $20.00 and set a "buy" rating on the stock in a research note on Thursday, November 7th. Mizuho reduced their price objective on Wolfspeed from $10.00 to $6.00 and set an "underperform" rating for the company in a research note on Tuesday, November 19th. The Goldman Sachs Group decreased their price objective on Wolfspeed from $22.00 to $19.00 and set a "buy" rating for the company in a research report on Thursday, November 7th. JPMorgan Chase & Co. dropped their target price on Wolfspeed from $20.00 to $17.00 and set a "neutral" rating on the stock in a report on Thursday, November 7th. Finally, Morgan Stanley raised their price target on shares of Wolfspeed from $10.00 to $15.00 and gave the stock an "equal weight" rating in a report on Wednesday, October 16th. Three investment analysts have rated the stock with a sell rating, ten have assigned a hold rating and four have given a buy rating to the company. According to MarketBeat.com, Wolfspeed has a consensus rating of "Hold" and an average target price of $17.21.

Wolfspeed Stock Performance

The firm has a market cap of $609.19 million, a price-to-earnings ratio of -0.80 and a beta of 1.43. The firm's 50 day moving average is $8.11 and its 200-day moving average is $12.14. The company has a debt-to-equity ratio of 9.82, a quick ratio of 2.54 and a current ratio of 3.14.

Insider Transactions at Wolfspeed

In other Wolfspeed news, Director Darren R. Jackson acquired 36,975 shares of the business's stock in a transaction that occurred on Wednesday, November 20th. The stock was acquired at an average price of $6.76 per share, with a total value 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 acquisition was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, Chairman Thomas H. Werner bought 37,500 shares of the stock in a transaction on Wednesday, November 20th. The stock was acquired at an average cost of $6.53 per share, for a total transaction of $244,875.00. Following the acquisition, the chairman now directly owns 108,549 shares in the company, valued at approximately $708,824.97. The trade was a 52.78 % increase in their ownership of the stock. The disclosure for this purchase can be found here. In the last quarter, insiders purchased 78,067 shares of company stock worth $524,747. 0.84% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Wolfspeed

Several hedge funds have recently modified their holdings of the business. GAMMA Investing LLC increased its position in Wolfspeed by 66.6% during the fourth quarter. GAMMA Investing LLC now owns 7,569 shares of the company's stock worth $50,000 after acquiring an additional 3,025 shares during the period. Principal Financial Group Inc. increased its holdings in shares of Wolfspeed by 41.4% during the 3rd quarter. Principal Financial Group Inc. now owns 592,599 shares of the company's stock worth $5,748,000 after purchasing an additional 173,409 shares during the period. Virtu Financial LLC raised its position in shares of Wolfspeed by 160.8% during the third quarter. Virtu Financial LLC now owns 58,560 shares of the company's stock valued at $568,000 after buying an additional 36,105 shares during the last quarter. Aequim Alternative Investments LP lifted its stake in shares of Wolfspeed by 20.2% in the third quarter. Aequim Alternative Investments LP now owns 196,836 shares of the company's stock valued at $1,909,000 after buying an additional 33,036 shares during the period. Finally, M&T Bank Corp grew its position in Wolfspeed by 120.5% during the third quarter. M&T Bank Corp now owns 64,222 shares of the company's stock worth $623,000 after buying an additional 35,101 shares in 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.