Market Analysts see Wolfspeed Inc [WOLF] gaining to $46. Time to buy?

Wolfspeed Inc [NYSE: WOLF] traded at a low on 01/04/24, posting a -2.42 loss after which it closed the day’ session at $39.58. The company report on December 4, 2023 at 9:00 AM that Wolfspeed Completes Sale of RF Business to MACOM.

Wolfspeed, Inc. (NYSE: WOLF) today announced it completed the sale of its radio frequency business (“Wolfspeed RF”) to MACOM Technology Solutions Holdings, Inc. (Nasdaq: MTSI) effective December 2, 2023. Under the transaction terms, Wolfspeed received approximately $75 million in cash, subject to a customary purchase price adjustment, and 711,528 shares of MACOM common stock, which shares had a market value of approximately $60.8 million based on the closing price for MACOM’s common stock on December 1, 2023 as reported on the Nasdaq Global Select Market.

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“The completed sale of Wolfspeed RF is the final step in our transformation, and we’re happy to say Wolfspeed is now the only pure-play silicon carbide semiconductor manufacturer in the industry,” said Gregg Lowe, Wolfspeed president and CEO. “As demand continues to accelerate across the automotive, industrial and renewable energy markets, we can now focus on innovation and capacity for our materials and power device businesses.”.

The results of the trading session contributed to over 6854541 shares changing hands. Over the past one week, the price volatility of Wolfspeed Inc stands at 5.13% while the volatility over the past one month is 5.30%.

The market cap for WOLF stock reached $4.96 billion, with 124.79 million shares outstanding and 123.94 million shares in the current float. Compared to the average trading volume of 3.74M shares, WOLF reached a trading volume of 6854541 in the most recent trading day, which is why market watchdogs consider the stock to be active.

What do top market gurus say 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 $44.05 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 2.17. 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.

Jefferies have made an estimate for Wolfspeed Inc shares, keeping their opinion on the stock as Hold, with their previous recommendation back on May 18, 2023.

The Average True Range (ATR) for Wolfspeed Inc is set at 2.41, with the Price to Sales ratio for WOLF stock in the period of the last 12 months amounting to 5.65. The Price to Book ratio for the last quarter was 3.98, with the Price to Cash per share for the same quarter was set at 26.71.

How has WOLF stock performed recently?

Wolfspeed Inc [WOLF] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -14.90. With this latest performance, WOLF shares dropped by -2.15% in over the last four-week period, additionally sinking by -32.82% over the last 6 months – not to mention a drop of -41.12% 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 45.82, with the RSI for the last a single of trading hit 38.68, and the three-weeks RSI is set at 48.78 for Wolfspeed Inc [WOLF]. The present Moving Average for the last 50 days of trading for this stock 37.42, while it was recorded at 42.47 for the last single week of trading, and 47.15 for the last 200 days.

Wolfspeed Inc [WOLF]: Deeper insight into the fundamentals

Operating Margin for any stock indicates how profitable investing would be, and Wolfspeed Inc [WOLF] shares currently have an operating margin of -21.21 and a Gross Margin at +29.14. Wolfspeed Inc’s Net Margin is presently recorded at -35.78.

Return on Total Capital for WOLF is now -4.14, given the latest momentum, and Return on Invested Capital for the company is -6.99. Return on Equity for this stock declined to -16.25, with Return on Assets sitting at -6.28. When it comes to the capital structure of this company, Wolfspeed Inc [WOLF] has a Total Debt to Total Equity ratio set at 265.73. Additionally, WOLF Total Debt to Total Capital is recorded at 72.66, with Total Debt to Total Assets ending up at 65.43. Long-Term Debt to Equity for the company is recorded at 265.21, with the Long-Term Debt to Total Capital now at 72.52.

Reflecting on the efficiency of the workforce at the company, Wolfspeed Inc [WOLF] managed to generate an average of -$68,701 per employee. Receivables Turnover for the company is 4.42 with a Total Asset Turnover recorded at a value of 0.18.Wolfspeed Inc’s liquidity data is similarly interesting compelling, with a Quick Ratio of 4.98 and a Current Ratio set at 5.44.

Insider trade positions for Wolfspeed Inc [WOLF]

The top three institutional holders of WOLF stocks are: VANGUARD GROUP INC with ownership of 1.3 billion shares, which is approximately 8.2815%. BLACKROCK INC., holding 1.03 billion shares of the stock with an approximate value of $176.59 billion in WOLF stocks shares; and BERKSHIRE HATHAWAY INC, currently with $156.75 billion in WOLF stock with ownership which is approximately 5.8325%.