The stock of Wolfspeed Inc. (NYSE:WOLF) increased by $0.19 on Tuesday to finish at $40.97, up 0.47 percent. The last five days have seen an average of 2,339,040 shares of common stock traded. 11 times new highs were reached in the current year, with a fall of -$28.07. The average number of shares traded over the last 20 days was 2,421,400, while the average volume over the last 50 days totaled 2,553,826.
WOLF stock dropped -3.89% since last month. On 09/19/23, the company’s shares reached a one-month low of $40.08. 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 -40.66% or -$28.07 this year, reaching a new high 11 times. Still, the stock price is down -67.35% from the 52-week high.
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Insider Transactions
WOLF stock investors should be aware that Wolfspeed Inc. (WOLF) stock had its last reported insider trading activity 28 days ago on Aug 23. On Aug 23, Director LE DUY LOAN T acquired 5,000 shares at $47.01 each. This transaction resulted in the insider spending $235,068. On Apr 28, REPLOGLE JOHN B added 10,566 shares at a price of US$47.54. After the transaction, the insider now owns 81,405 shares. PRESIDENT & CEO LOWE GREGG A had earlier bought 5,450 shares on Apr 28 for $45.94 a share. The transaction was completed for $250,357.
Valuation Metrics
Beta for the stock is 1.58. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 5.66, the price-to-book (PB) ratio of 3.15.
Financial Health
For the three months ended June 29, Wolfspeed Inc.’s quick ratio was 5.20, while its current ratio was 5.70, indicating its ability to pay off its debt. The company’s long-term debt to equity ratio for the quarter ending June 29 is 2.58, and the total debt to equity ratio is 2.58. As far as profitability goes, gross margin for the trailing twelve months is 30.30% percent. Wolfspeed Inc.’s operating margin stood at -37.30% for the same period. Based on annual data, it had gross profit of $279.5 million and revenue of $921.9 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 -6.20%. There was a -5.90% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was -18.30%.
Earnings Surprise
According to Wolfspeed Inc.’s quarterly financial report for the quarter that ended June 29. A higher net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $235.4 million, while revenues rose by 2.93% to $228.7 million. It was predicted that Wolfspeed Inc.’s quarterly earnings would be -$0.42, but it ended up being -$0.2. EBITDA was -$67.0 million for the quarter. At the end of Wolfspeed Inc.’s most recent quarter ended June 29, its liabilities totaled 4.96 billion, while its total debt was $4.31 billion. Equity owned by shareholders amounts to $125.25 million.
Technical Picture
Here’s a quick look at Wolfspeed Inc.’s (WOLF) price momentum from a technical perspective. As of 19 September, the RSI 9-day stood at 30.29%, suggesting the stock is Neutral, with a 44.67% historical volatility rate.
The stochastic %K and %D were 12.06% and 21.33% respectively, while the average true range (ATR) was 2.06. Based on the 14-day stochastic reading of 10.18%, the RSI (14) reading is 33.11%. On the 9-day MACD Oscillator, the stock is at -1.05, and the 14-day reading is at -2.20.
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 9 companies recommend holding. The stock is underweighted by 1 analyst. Among the analysts who rate the stock, 1 rate it overweight and 10 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 $42.00 and $80.00, with a median target price of $60.00. In analyzing these forecasts, the average price target given by analysts for Wolfspeed Inc. (WOLF) is $58.24.
