Wolfspeed Inc. (NYSE: WOLF) stock jumped 5.83% on Friday to $88.54 against a previous-day closing price of $83.66. With 1.2 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.74 million shares. During the session, the Semiconductors company that operates in wider Technology sector, reached to the highest price of $88.76 whereas the lowest price it dropped to was $83.60. The 52-week range on WOLF shows that it touched its highest point at $142.33 and its lowest point at $58.07 during that stretch. It currently has a 1-year price target of $101.68. Beta for the stock currently stands at 1.72.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of WOLF was up-trending over the past week, with a rise of 9.24%, but this was up by 30.80% over a month. Three-month performance dropped to -7.47% while six-month performance fell -9.14%. The stock lost -5.44% in the past year, while it has lost -20.78% so far this year. A look at the trailing 12-month EPS for WOLF yields -3.26 with Next year EPS estimates of 0.10. For the next quarter, that number is -0.10. This implies an EPS growth rate of -65.90% for this year and 119.30% for next year.
Float and Shares Shorts:
At present, 123.60 million WOLF shares are outstanding with a float of 122.79 million shares on hand for trading. On Jul 14, 2022, short shares totaled 10.11 million, which was 8.17% higher than short shares on Jun 14, 2022. In addition to Mr. Gregg A. Lowe as the firm’s Pres, CEO & Director, Mr. Neill P. Reynolds serves as its Exec. VP & CFO.
Through their ownership of 108.90% of WOLF’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 72.17% of WOLF, in contrast to 34.20% held by mutual funds. Shares owned by individuals account for 0.57%. As the largest shareholder in WOLF with 11.20% of the stake, Capital Research & Management Co holds 13,850,277 shares worth 13,850,277. A second-largest stockholder of WOLF, Capital Research & Management Co, holds 11,888,030 shares, controlling over 9.62% of the firm’s shares. The Vanguard Group, Inc. is the third largest shareholder in WOLF, holding 11,425,844 shares or 9.24% stake. With a 4.31% stake in WOLF, the American Funds Growth Fund of Ame is the largest stakeholder. A total of 5,333,582 shares are owned by the mutual fund manager. The American Funds New World Fund, which owns about 3.98% of WOLF stock, is the second-largest Mutual Fund holder. It holds 4,917,850 shares valued at 312.04 million. American Funds Small Cap World Fu holds 3.55% of the stake in WOLF, owning 4,384,700 shares worth 278.21 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for WOLF since 18 analysts follow the stock currently. There are 10 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 6 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 1 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With WOLF analysts setting a high price target of $150.00 and a low target of $70.00, the average target price over the next 12 months is $102.38. Based on these targets, WOLF could surge 69.41% to reach the target high and fall by -20.94% to reach the target low. Reaching the average price target will result in a growth of 15.63% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. WOLF will report FY 2022 earnings on 08/16/2023. Analysts have provided yearly estimates in a range of -$0.55 being high and -$0.65 being low. For WOLF, this leads to a yearly average estimate of -$0.58. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Wolfspeed Inc. surprised analysts by $0.02 when it reported -$0.12 EPS against a consensus estimate of -$0.14. The surprise factor in the prior quarter was $0.02. Based on analyst estimates, the high estimate for the next quarter is -$0.08 and the low estimate is -$0.15. The average estimate for the next quarter is thus -$0.10.
Summary of Insider Activity:
Insiders traded WOLF stock several times over the past three months with 4 Buys and 1 Sells. In these transactions, 12,737 shares were bought while 1,000 shares were sold. The number of buy transactions has increased to 20 while that of sell transactions has risen to 7 over the past year. The total number of shares bought during that period was 147,100 while 91,783 shares were sold.