Wolfspeed Inc. (NYSE: WOLF) stock fell -1.71% on Friday to $43.67 against a previous-day closing price of $44.43. With 3.03 million shares changed hands, the volume of the stock remained heavier than its average volume of 2.86 million shares. During the session, the Semiconductors company that operates in wider Technology sector, reached to the highest price of $45.20 whereas the lowest price it dropped to was $43.38. 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 $59.59. Beta for the stock currently stands at 1.57.
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 4.00%, but this was down by -17.87% over a month. Three-month performance dropped to -20.50% while six-month performance fell -30.80%. The stock lost -63.10% in the past year, while it has lost -36.75% so far this year. A look at the trailing 12-month EPS for WOLF yields -2.65 with Next year EPS estimates of -1.10. For the next quarter, that number is -0.68. This implies an EPS growth rate of -8.00% for this year and 59.30% for next year.
Float and Shares Shorts:
At present, 124.68 million WOLF shares are outstanding with a float of 124.19 million shares on hand for trading. On Aug 30, 2023, short shares totaled 17.44 million, which was 13.93% higher than short shares on Jul 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.
Through their ownership of 125.66% of WOLF’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 79.54% of WOLF, in contrast to 30.34% held by mutual funds. Shares owned by individuals account for 0.85%. As the largest shareholder in WOLF with 12.54% of the stake, Capital Research & Management Co holds 15,708,890 shares worth 15,708,890. A second-largest stockholder of WOLF, Capital Research & Management Co, holds 12,846,874 shares, controlling over 10.26% of the firm’s shares. The Vanguard Group, Inc. is the third largest shareholder in WOLF, holding 12,545,424 shares or 10.02% stake. With a 7.06% 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 4.68% of WOLF stock, is the second-largest Mutual Fund holder. It holds 5,857,703 shares valued at 280.12 million. American Funds New World Fund holds 3.98% of the stake in WOLF, owning 4,987,304 shares worth 238.49 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 Jun 24, 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.
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 $80.00 and a low target of $42.00, the average target price over the next 12 months is $58.24. Based on these targets, WOLF could surge 83.19% to reach the target high and fall by -3.82% to reach the target low. Reaching the average price target will result in a growth of 33.36% 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 6 Buys and 4 Sells. In these transactions, 100,860 shares were bought while 32,810 shares were sold. The number of buy transactions has increased to 18 while that of sell transactions has risen to 6 over the past year. The total number of shares bought during that period was 128,168 while 37,878 shares were sold.