Healthy Upside Potential: Wolfspeed Inc. (WOLF)

Wolfspeed Inc. (NYSE: WOLF) stock fell -1.66% on Wednesday to $49.14 against a previous-day closing price of $49.97. With 3.55 million shares changed hands, the volume of the stock remained heavier than its average volume of 2.93 million shares. During the session, the Semiconductors company that operates in wider Technology sector, reached to the highest price of $50.08 whereas the lowest price it dropped to was $47.75. The 52-week range on WOLF shows that it touched its highest point at $125.48 and its lowest point at $39.02 during that stretch. It currently has a 1-year price target of $66.65. 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 16.94%, but this was down by -12.75% over a month. Three-month performance dropped to -33.95% while six-month performance fell -44.27%. The stock lost -27.78% in the past year, while it has lost -28.82% so far this year. A look at the trailing 12-month EPS for WOLF yields -2.24 with Next year EPS estimates of -0.55. For the next quarter, that number is -0.20. This implies an EPS growth rate of 19.10% for this year and -14.60% for next year.

Float and Shares Shorts:

At present, 124.44 million WOLF shares are outstanding with a float of 123.34 million shares on hand for trading. On Apr 27, 2023, short shares totaled 16.35 million, which was 13.14% higher than short shares on Mar 30, 2023. 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 112.05% of WOLF’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 81.19% of WOLF, in contrast to 32.95% held by mutual funds. Shares owned by individuals account for 0.80%. As the largest shareholder in WOLF with 12.62% of the stake, Capital Research & Management Co holds 15,698,889 shares worth 15,698,889. A second-largest stockholder of WOLF, Capital Research & Management Co, holds 12,688,989 shares, controlling over 10.20% of the firm’s shares. The Vanguard Group, Inc. is the third largest shareholder in WOLF, holding 11,838,865 shares or 9.52% stake. With a 7.10% stake in WOLF, the American Funds Growth Fund of Ame is the largest stakeholder. A total of 8,838,367 shares are owned by the mutual fund manager. The American Funds Fundamental Invest, which owns about 5.79% of WOLF stock, is the second-largest Mutual Fund holder. It holds 7,204,533 shares valued at 335.37 million. American Funds New World Fund holds 4.01% of the stake in WOLF, owning 4,987,304 shares worth 232.16 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Mar 25, 2023, WOLF reported revenue of $228.50M and operating income of -$58.90M. The EBITDA in the recently reported quarter was -$55.90M and diluted EPS was $0.26.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for WOLF since 0 analysts follow the stock currently. 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 $110.00 and a low target of $45.00, the average target price over the next 12 months is $65.12. Based on these targets, WOLF could surge 123.85% to reach the target high and fall by -8.42% to reach the target low. Reaching the average price target will result in a growth of 32.52% 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.

Summary of Insider Activity:

Insiders traded WOLF stock several times over the past three months with 3 Buys and 0 Sells. In these transactions, 16,260 shares were bought while 0 shares were sold. The number of buy transactions has increased to 27 while that of sell transactions has risen to 11 over the past year. The total number of shares bought during that period was 131,176 while 50,136 shares were sold.

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