The stock of Wolfspeed Inc. (NYSE:WOLF) decreased by -$1.76 on Tuesday to finish at $54.43, down -3.13 percent. The last five days have seen an average of 2,001,340 shares of common stock traded. 11 times new highs were reached in the current year, with a fall of -$14.61. The average number of shares traded over the last 20 days was 1,869,075, while the average volume over the last 50 days totaled 2,648,300.
WOLF stock dropped -18.47% since last month. On 08/14/23, the company’s shares reached a one-month low of $53.06. The stock touched a high of $125.48 on 02/02/23, after rallying from a low of $39.02 in 52 weeks. The price of WOLF stock has declined by -21.16% or -$14.61 this year, reaching a new high 11 times. Still, the stock price is down -56.62% from the 52-week high.
Insider Transactions
WOLF stock investors should be aware that Wolfspeed Inc. (WOLF) stock had its last reported insider trading activity 110 days ago on Apr 28. On Apr 28, Director REPLOGLE JOHN B acquired 10,566 shares at $47.54 each. This transaction resulted in the insider spending $502,308. On Apr 28, LOWE GREGG A added 5,450 shares at a price of US$45.94. After the transaction, the insider now owns 524,855 shares. Director LE DUY LOAN T had earlier bought 3,000 shares on Nov 18 for $90.95 a share. The transaction was completed for $272,840.
Valuation Metrics
Beta for the stock is 1.55. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 7.41, the price-to-book (PB) ratio of 3.97.
Financial Health
For the three months ended March 30, Wolfspeed Inc.’s quick ratio was 4.20, while its current ratio was 4.70, indicating its ability to pay off its debt. The company’s long-term debt to equity ratio for the quarter ending March 30 is 1.78, and the total debt to equity ratio is 1.78. As far as profitability goes, gross margin for the trailing twelve months is 32.10% percent. Wolfspeed Inc.’s EBITDA margin for the year ended March 30 was -4.61%, whereas its operating margin stood at -31.20% for the same period. Based on annual data, it had gross profit of $249.3 million and revenue of $746.2 million.
Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. WOLF’s return on assets (ROA) during the last 12 months has been -4.00%. There was a -8.10% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was -9.20%.
Earnings Surprise
According to Wolfspeed Inc.’s quarterly financial report for the quarter that ended March 30, it had $1.45 billion in cash and short-term investments. A higher net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $228.7 million, while revenues rose by 17.8% to $216.1 million. It was predicted that Wolfspeed Inc.’s quarterly earnings would be -$0.13, but it ended up being -$0.15, beating the consensus by 13.30%. EBITDA was -$62.0 million for the quarter. At the end of Wolfspeed Inc.’s most recent quarter ended March 30, its liabilities totaled 3.75 billion, while its total debt was $3.11 billion. Equity owned by shareholders amounts to $124.47 million.
Technical Picture
Here’s a quick look at Wolfspeed Inc.’s (WOLF) price momentum from a technical perspective. As of 15 August, the RSI 9-day stood at 32.29%, suggesting the stock is Neutral, with a 32.07% historical volatility rate.
The stochastic %K and %D were 14.66% and 10.16% respectively, while the average true range (ATR) was 2.60. Based on the 14-day stochastic reading of 10.41%, the RSI (14) reading is 38.45%. On the 9-day MACD Oscillator, the stock is at -1.79, and the 14-day reading is at -4.07.
Analyst Ratings
In its analyst report released on May 18, 2023, Jefferies began covering Wolfspeed Inc. (NYSE: WOLF). The stock was rated as a Hold by the brokerage firm. Analysts have assigned Wolfspeed Inc. (WOLF) an Overweight rating. WOLF is a stock that is recommended for selling by 1 brokerage firm, while 10 companies recommend holding. The stock is underweighted by 1 analyst. Among the analysts who rate the stock, 1 rate it overweight and 9 others recommend it as a buy.
What is WOLF’s price target for the next 12 months?
The current consensus forecast for the stock is between $45.00 and $80.00, with a median target price of $70.00. In analyzing these forecasts, the average price target given by analysts for Wolfspeed Inc. (WOLF) is $64.24.
