Stock Traders Purchase High Volume of Wolfspeed Call Options (NYSE:WOLF)

Wolfspeed, Inc. (NYSE:WOLF) was the recipient of some unusual options trading on Wednesday. Traders bought 22,753 call options on the company. This represents an increase of 33% compared to the average daily volume of 17,159 call options.

Hedge Funds Weigh In On Wolfspeed

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Renesas Electronics America Inc. purchased a new position in Wolfspeed in the fourth quarter worth $293,400,000. Capital Research Global Investors purchased a new position in Wolfspeed during the 3rd quarter worth $79,426,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its position in Wolfspeed by 94.3% during the 1st 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 buying an additional 906,968 shares in the last quarter. Goldman Sachs Group Inc. raised its stake 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 buying an additional 881,603 shares during the last quarter. Finally, UBS Group AG grew its stake in shares of Wolfspeed by 3,413.9% during the fourth quarter. UBS Group AG now owns 1,269,548 shares of the company’s stock worth $22,103,000 after acquiring an additional 1,233,419 shares during the last quarter.

Wolfspeed Stock Down 11.1%

NYSE:WOLF traded down $5.44 during mid-day trading on Wednesday, hitting $43.34. 4,781,210 shares of the stock traded hands, compared to its average volume of 4,284,931. The stock has a market capitalization of $2.10 billion and a price-to-earnings ratio of -4.10. Wolfspeed has a 52 week low of $8.05 and a 52 week high of $80.82. The firm’s 50 day moving average is $41.59 and its two-hundred day moving average is $26.66.

Wolfspeed (NYSE:WOLF) last posted its quarterly earnings results on Tuesday, May 5th. The company reported ($3.26) EPS for the quarter, topping the consensus estimate of ($3.78) by $0.52. The company had revenue of $150.20 million during the quarter, compared to analysts’ expectations of $150.00 million. The company’s quarterly revenue was down 19.0% on a year-over-year basis. During the same period in the prior year, the business earned ($0.72) EPS.

Analysts Set New Price Targets

Several equities analysts have commented on WOLF shares. Wall Street Zen upgraded shares of Wolfspeed from a “strong sell” rating to a “sell” rating in a research report on Saturday, May 9th. Weiss Ratings reissued a “sell (d-)” rating on shares of Wolfspeed in a research note on Friday, March 27th. One investment analyst has rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and an average price target of $20.00.

Wolfspeed Company Profile

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.