A better buy-in window may exist right now for Wolfspeed Inc. (WOLF)

Wolfspeed Inc. (NYSE: WOLF) stock jumped 7.26% on Monday to $85.72 against a previous-day closing price of $79.92. With 2.27 million shares changed hands, the volume of the stock remained lighter than its average volume of 2.91 million shares. During the session, the Semiconductors company that operates in wider Technology sector, reached to the highest price of $85.86 whereas the lowest price it dropped to was $80.29. The 52-week range on WOLF shows that it touched its highest point at $125.48 and its lowest point at $58.07 during that stretch. It currently has a 1-year price target of $96.53. Beta for the stock currently stands at 1.51.

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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 7.32%, but this was up by 13.49% over a month. Three-month performance dropped to -15.85% while six-month performance rose 12.73%. The stock lost -7.47% in the past year, while it has gained 24.16% so far this year. A look at the trailing 12-month EPS for WOLF yields -2.07 with Next year EPS estimates of 0.99. For the next quarter, that number is -0.12. This implies an EPS growth rate of 19.10% for this year and 530.40% for next year.

Float and Shares Shorts:

At present, 124.03 million WOLF shares are outstanding with a float of 123.34 million shares on hand for trading. On Oct 13, 2022, short shares totaled 8.98 million, which was 7.23% higher than short shares on Sep 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.


Institutional Ownership:

Through their ownership of 109.26% of WOLF’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 77.54% of WOLF, in contrast to 27.63% held by mutual funds. Shares owned by individuals account for 0.79%. As the largest shareholder in WOLF with 10.97% of the stake, Capital Research & Management Co holds 13,628,117 shares worth 13,628,117. A second-largest stockholder of WOLF, The Vanguard Group, Inc., holds 11,455,629 shares, controlling over 9.22% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in WOLF, holding 10,386,678 shares or 8.36% stake. With a 6.04% stake in WOLF, the American Funds Growth Fund of Ame is the largest stakeholder. A total of 7,495,680 shares are owned by the mutual fund manager. The American Funds Fundamental Invest, which owns about 5.05% of WOLF stock, is the second-largest Mutual Fund holder. It holds 6,267,309 shares valued at 432.7 million. American Funds New World Fund holds 3.76% of the stake in WOLF, owning 4,675,372 shares worth 322.79 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for WOLF since 20 analysts follow the stock currently. There are 13 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 4 believe that the stock is worth HOLDING, 1 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 $118.00 and a low target of $65.00, the average target price over the next 12 months is $98.11. Based on these targets, WOLF could surge 37.66% to reach the target high and fall by -24.17% to reach the target low. Reaching the average price target will result in a growth of 14.45% 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 2023 earnings on 08/22/2023. Analysts have provided yearly estimates in a range of -$0.10 being high and -$0.43 being low. For WOLF, this leads to a yearly average estimate of -$0.25. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Wolfspeed Inc. surprised analysts by $0.01 when it reported -$0.04 EPS against a consensus estimate of -$0.05. The surprise factor in the prior quarter was $0.08. Based on analyst estimates, the high estimate for the next quarter is -$0.10 and the low estimate is -$0.20. The average estimate for the next quarter is thus -$0.13.

Summary of Insider Activity:

Insiders traded WOLF stock several times over the past three months with 7 Buys and 0 Sells. In these transactions, 8,272 shares were bought while 0 shares were sold. The number of buy transactions has increased to 28 while that of sell transactions has risen to 10 over the past year. The total number of shares bought during that period was 125,407 while 53,904 shares were sold.

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