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

Wolfspeed, Inc. (NYSE:WOLF)’s stock price gapped up prior to trading on Friday . The stock had previously closed at $6.63, but opened at $6.80. Wolfspeed shares last traded at $6.83, with a volume of 1,106,941 shares changing hands.

Wall Street Analysts Forecast Growth

Several research analysts recently weighed in on the stock. Susquehanna decreased their price objective on shares of Wolfspeed from $16.00 to $11.00 and set a “neutral” rating on the stock in a research report on Thursday, November 7th. Canaccord Genuity Group lowered their price objective on shares of Wolfspeed from $25.00 to $18.00 and set a “buy” rating on the stock in a research report on Thursday, November 7th. Piper Sandler reiterated an “overweight” rating and issued a $18.00 target price (down from $20.00) on shares of Wolfspeed in a research report on Thursday, November 7th. Mizuho lowered their price target on Wolfspeed from $10.00 to $6.00 and set an “underperform” rating on the stock in a research report on Tuesday, November 19th. Finally, 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. Three equities research analysts have rated the stock with a sell rating, ten have assigned a hold rating and four have issued a buy rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Hold” and a consensus target price of $17.21.

Wolfspeed Stock Up 8.1 %

The company has a quick ratio of 2.54, a current ratio of 3.14 and a debt-to-equity ratio of 9.82. The stock has a market cap of $915.70 million, a P/E ratio of -1.21 and a beta of 1.38. The company has a 50-day simple moving average of $9.09 and a two-hundred day simple moving average of $12.95.

Insider Buying and Selling at Wolfspeed

In other Wolfspeed news, Director Darren R. Jackson purchased 36,975 shares of the stock in a transaction 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 directly owns 85,996 shares of the company’s stock, valued at approximately $581,332.96. This trade represents a 75.43 % increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, Chairman Thomas H. Werner acquired 37,500 shares of the business’s stock in a transaction dated Wednesday, November 20th. The stock was acquired 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 owns 108,549 shares in the company, valued at approximately $708,824.97. The trade was a 52.78 % increase in their position. The disclosure for this purchase can be found here. Insiders bought 78,067 shares of company stock valued at $524,747 in the last quarter. Company insiders own 0.84% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the stock. Eastern Bank bought a new stake in shares of Wolfspeed during the 3rd quarter valued at about $27,000. GAMMA Investing LLC lifted its holdings in Wolfspeed by 416.4% in the third quarter. GAMMA Investing LLC now owns 4,544 shares of the company’s stock worth $44,000 after buying an additional 3,664 shares during the period. Asset Management One Co. Ltd. boosted its position in Wolfspeed by 69.0% during the 3rd quarter. Asset Management One Co. Ltd. now owns 7,067 shares of the company’s stock valued at $69,000 after acquiring an additional 2,885 shares in the last quarter. Ground Swell Capital LLC purchased a new position in shares of Wolfspeed during the 3rd quarter worth approximately $99,000. Finally, US Bancorp DE raised its position in shares of Wolfspeed by 225.9% in the 3rd quarter. US Bancorp DE now owns 11,343 shares of the company’s stock worth $110,000 after acquiring an additional 7,863 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.