Wolfspeed (NYSE:WOLF) Trading 13.6% Higher – Here’s Why

Wolfspeed, Inc. (NYSE:WOLF) traded up 13.6% during trading on Monday . The company traded as high as $52.95 and last traded at $52.9530. 2,628,721 shares were traded during trading, a decline of 2% from the average session volume of 2,683,099 shares. The stock had previously closed at $46.60.

Wolfspeed News Roundup

Here are the key news stories impacting Wolfspeed this week:

• Positive Sentiment: Citrini Research highlighted Wolfspeed as an attractive power-chip play tied to AI infrastructure demand, helping drive strong buying interest and a momentum surge. Wolfspeed stock surges 20% on Citrini research highlight
• Positive Sentiment: Multiple follow-up articles said the stock extended its rally as investors piled into the name after the bullish thesis framed Wolfspeed as well-positioned for AI infrastructure growth. Wolfspeed shares extend rally after Citrini spotlights AI infrastructure potential (WOLF)
• Positive Sentiment: Several market write-ups also pointed to Wolfspeed as a short-squeeze candidate, which can amplify gains when sentiment turns bullish and trading volume spikes. Short Squeeze Candidates: AST SpaceMobile, Wolfspeed

Analyst Upgrades and Downgrades

A number of equities research analysts recently commented on the company. Susquehanna decreased their price target on Wolfspeed from $30.00 to $20.00 and set a “neutral” rating on the stock in a research report on Thursday, January 22nd. Piper Sandler restated an “overweight” rating and set a $20.00 price target (up from $6.00) on shares of Wolfspeed in a research report on Thursday, February 5th. Zacks Research raised Wolfspeed to a “hold” rating in a report on Monday, February 9th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Wolfspeed in a report on Friday, March 27th. Finally, Wall Street Zen raised Wolfspeed from a “strong sell” rating to a “sell” rating in a report on Saturday. One analyst has rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus price target of $20.00.

Wolfspeed Stock Performance

The firm’s 50-day simple moving average is $23.77 and its 200 day simple moving average is $21.06. The company has a market cap of $3.03 billion and a P/E ratio of -8.92.

Wolfspeed (NYSE:WOLF) last announced its quarterly earnings data on Tuesday, May 5th. The company reported ($3.26) EPS for the quarter, topping analysts’ consensus estimates of ($3.78) by $0.52. The company had revenue of $150.20 million for the quarter, compared to analyst estimates of $150.00 million. The firm’s revenue for the quarter was down 19.0% on a year-over-year basis. During the same period last year, the firm earned ($0.72) earnings per share.

Institutional Investors Weigh In On Wolfspeed

A number of institutional investors and hedge funds have recently added to or reduced their stakes in WOLF. Renesas Electronics America Inc. bought a new stake in Wolfspeed in the fourth quarter valued at about $293,400,000. Capital Research Global Investors bought a new stake in Wolfspeed in the third quarter valued at about $79,426,000. UBS Group AG increased its holdings in Wolfspeed by 3,413.9% in the fourth quarter. UBS Group AG now owns 1,269,548 shares of the company’s stock valued at $22,103,000 after purchasing an additional 1,233,419 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its holdings in Wolfspeed by 94.3% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 1,868,741 shares of the company’s stock valued at $5,718,000 after purchasing an additional 906,968 shares during the last quarter. Finally, Goldman Sachs Group Inc. increased its holdings in Wolfspeed by 176.7% in the first quarter. Goldman Sachs Group Inc. now owns 1,380,499 shares of the company’s stock valued at $4,224,000 after purchasing an additional 881,603 shares during the last quarter.

About Wolfspeed

Wolfspeed, Inc (NYSE: WOLF) is a leading developer and manufacturer of silicon carbide (SiC) and gallium nitride (GaN) semiconductor materials and devices. The company’s product portfolio addresses high-growth markets such as electric vehicles, renewable energy, fast-charging infrastructure, aerospace and defense, and telecommunications. By leveraging proprietary materials and device designs, Wolfspeed delivers solutions that offer improved energy efficiency, higher power density and greater thermal performance compared to conventional silicon-based semiconductors.

Founded as part of Cree, Inc and spun off to form an independent public company in October 2021, Wolfspeed traces its roots to the mid-1980s when it pioneered the commercial use of wide-bandgap semiconductor technology.