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

Wolfspeed, Inc. (NYSE:WOLF - Get Free Report)'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.

Analyst Ratings Changes

WOLF has been the subject of a number of analyst reports. JPMorgan Chase & Co. cut their price objective on Wolfspeed from $20.00 to $17.00 and set a "neutral" rating for the company in a report on Thursday, November 7th. Bank of America cut their target price on shares of Wolfspeed from $9.50 to $6.00 and set an "underperform" rating for the company in a research note on Thursday, January 30th. Susquehanna reduced their target price on Wolfspeed from $11.00 to $7.00 and set a "neutral" rating on the stock in a report on Wednesday, January 22nd. Roth Mkm dropped their price target on Wolfspeed from $25.00 to $20.00 and set a "buy" rating for the company in a report on Thursday, November 7th. Finally, The Goldman Sachs Group reduced their price objective on Wolfspeed from $17.00 to $15.00 and set a "buy" rating on the stock in a research note on Thursday, January 30th. Three analysts have rated the stock with a sell rating, ten have given a hold rating and four have assigned a buy rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Hold" and an average target price of $14.86.

Wolfspeed Price Performance

The firm has a market capitalization of $784.78 million, a P/E ratio of -0.80 and a beta of 1.43. The company has a 50-day moving average price of $6.63 and a 200-day moving average price of $9.39. The company has a debt-to-equity ratio of 17.26, a quick ratio of 2.47 and a current ratio of 3.15.

Wolfspeed (NYSE:WOLF - Get Free Report) last released its quarterly earnings data on Wednesday, January 29th. The company reported ($1.10) earnings per share for the quarter, missing the consensus estimate of ($0.90) by ($0.20). Wolfspeed had a negative return on equity of 70.84% and a negative net margin of 125.96%. On average, sell-side analysts predict that Wolfspeed, Inc. will post -4.15 earnings per share for the current year.

Insider Activity

In other news, Director Glenda Dorchak purchased 3,592 shares of Wolfspeed stock in a transaction on Friday, November 22nd. The stock was purchased at an average price of $8.33 per share, with a total value of $29,921.36. Following the transaction, the director now directly owns 18,688 shares in the company, valued at $155,671.04. The trade was a 23.79 % increase in their position. The acquisition was disclosed in a document filed with the SEC, which can be accessed through this link. Also, Director Darren R. Jackson acquired 36,975 shares of the stock in a transaction dated Wednesday, November 20th. The stock was acquired at an average price of $6.76 per share, for a total transaction of $249,951.00. Following the completion of the acquisition, the director now directly owns 85,996 shares of the company's stock, valued at $581,332.96. The trade was a 75.43 % increase in their ownership of the stock. The disclosure for this purchase can be found here. Insiders have acquired 78,067 shares of company stock worth $524,747 in the last 90 days. Corporate insiders own 0.84% of the company's stock.

Hedge Funds Weigh In On Wolfspeed

Large investors have recently modified their holdings of the business. Jones Financial Companies Lllp boosted its position in Wolfspeed by 1,240.6% during the fourth quarter. Jones Financial Companies Lllp now owns 3,834 shares of the company's stock valued at $26,000 after purchasing an additional 3,548 shares during the last quarter. Eastern Bank acquired a new position in Wolfspeed during the third quarter worth $27,000. R Squared Ltd bought a new stake in Wolfspeed during the fourth quarter worth $28,000. Steward Partners Investment Advisory LLC lifted its stake in Wolfspeed by 192.0% in the fourth quarter. Steward Partners Investment Advisory LLC now owns 4,429 shares of the company's stock valued at $29,000 after acquiring an additional 2,912 shares during the last quarter. Finally, KBC Group NV grew 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 acquiring an additional 2,629 shares during the period.

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.