Wolfspeed Inc. [WOLF] stock Initiated by SMBC Nikko analyst, price target now $140

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Wolfspeed Inc. [NYSE: WOLF] loss -14.80% or -15.02 points to close at $86.50 with a heavy trading volume of 3817990 shares. The company report on May 4, 2022 that Wolfspeed Reports Financial Results for the Third Quarter of Fiscal Year 2022.

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Wolfspeed, Inc. (NYSE: WOLF), formerly known as Cree, Inc., today announced revenue of $188.0 million for its third quarter of fiscal 2022, ended March 27, 2022. This represents a 37% increase compared to revenue from continuing operations of $137.3 million reported for the third quarter of fiscal 2021, and a 9% increase compared to the second quarter of fiscal 2022. GAAP net loss from continuing operations was $66.5 million for the third quarter of fiscal 2022 and the third quarter of fiscal 2021. GAAP net loss per diluted share from continuing operations was $0.54 and $0.59 for the third quarter of fiscal 2022 and the third quarter of fiscal 2021, respectively. On a non-GAAP basis, net loss from continuing operations for the third quarter of fiscal 2022 was $14.3 million, or $0.12 per diluted share, compared to non-GAAP net loss from continuing operations for the third quarter of fiscal 2021 of $24.7 million, or $0.22 per diluted share.

“The opening of our new Mohawk Valley 200mm Silicon Carbide semiconductor wafer fab was a tremendous undertaking that required the best from our talented team across nearly every function,” said Wolfspeed Chief Executive Officer, Gregg Lowe. “Additionally, our financial results for the quarter continue to demonstrate progress towards our corporate objectives and the further adoption of Silicon Carbide across a wide range of applications.”.

It opened the trading session at $97.11, the shares rose to $98.465 and dropped to $85.34, the range by which the price of stock traded the whole day. The daily chart for WOLF points out that the company has recorded -34.84% loss over the past six months. However, it is still -15.24% lower than its most recent low trading price.

If we look at the average trading volume of 1.68M shares, WOLF reached to a volume of 3817990 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about Wolfspeed Inc. [WOLF]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for WOLF shares is $117.03 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on WOLF stock is a recommendation set at 2.70. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

SMBC Nikko have made an estimate for Wolfspeed Inc. shares, keeping their opinion on the stock as Outperform, with their previous recommendation back on March 29, 2022. While these analysts kept the previous recommendation, Citigroup dropped their target price from $135 to $125. The new note on the price target was released on January 27, 2022, representing the official price target for Wolfspeed Inc. stock. Previously, the target price had yet another drop from $155 to $145, while Canaccord Genuity kept a Buy rating on WOLF stock.

The Average True Range (ATR) for Wolfspeed Inc. is set at 6.78, with the Price to Sales ratio for WOLF stock in the period of the last 12 months amounting to 18.29. The Price to Book ratio for the last quarter was 4.26, with the Price to Cash per share for the same quarter was set at 5.30.

Trading performance analysis for WOLF stock

Wolfspeed Inc. [WOLF] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -10.05. With this latest performance, WOLF shares dropped by -19.71% in over the last four-week period, additionally sinking by -34.84% over the last 6 months – not to mention a drop of -8.13% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for WOLF stock in for the last two-week period is set at 36.87, with the RSI for the last a single of trading hit 33.23, and the three-weeks RSI is set at 39.90 for Wolfspeed Inc. [WOLF]. The present Moving Average for the last 50 days of trading for this stock 103.07, while it was recorded at 94.23 for the last single week of trading, and 101.33 for the last 200 days.

Wolfspeed Inc. [WOLF]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and Wolfspeed Inc. [WOLF] shares currently have an operating margin of -40.35 and a Gross Margin at +28.56. Wolfspeed Inc.’s Net Margin is presently recorded at -65.20.

Return on Total Capital for WOLF is now -7.23, given the latest momentum, and Return on Invested Capital for the company is -11.73. Return on Equity for this stock declined to -16.32, with Return on Assets sitting at -10.26. When it comes to the capital structure of this company, Wolfspeed Inc. [WOLF] has a Total Debt to Total Equity ratio set at 40.21. Additionally, WOLF Total Debt to Total Capital is recorded at 28.68, with Total Debt to Total Assets ending up at 24.69. Long-Term Debt to Equity for the company is recorded at 39.75, with the Long-Term Debt to Total Capital now at 28.35.

Reflecting on the efficiency of the workforce at the company, Wolfspeed Inc. [WOLF] managed to generate an average of -$98,875 per employee. Receivables Turnover for the company is 4.72 with a Total Asset Turnover recorded at a value of 0.16.Wolfspeed Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 2.80 and a Current Ratio set at 3.40.

An analysis of insider ownership at Wolfspeed Inc. [WOLF]

There are presently around $12,775 million, in the hands of institutional investors. The top three institutional holders of WOLF stocks are: BLACKROCK INC. with ownership of 14,916,503, which is approximately -9.389% of the company’s market cap and around 0.20% of the total institutional ownership; CAPITAL RESEARCH GLOBAL INVESTORS, holding 14,236,967 shares of the stock with an approximate value of $1.45 billion in WOLF stocks shares; and CAPITAL INTERNATIONAL INVESTORS, currently with $1.11 billion in WOLF stock with ownership of nearly 6.881% of the company’s market capitalization.

Positions in Wolfspeed Inc. stocks held by institutional investors increased at the end of May and at the time of the May reporting period, where 263 institutional holders increased their position in Wolfspeed Inc. [NYSE:WOLF] by around 15,390,985 shares. Additionally, 179 investors decreased positions by around 9,056,520 shares, while 62 investors held positions by with 101,391,726 shares. The mentioned changes placed institutional holdings at 125,839,231 shares, according to the latest SEC report filing. WOLF stock had 125 new institutional investments in for a total of 8,364,136 shares, while 59 institutional investors sold positions of 2,690,910 shares during the same period.