Capital Research & Management Co recently announced the acquisition of new stake in Wolfspeed Inc. (NYSE:WOLF). The institutional investor has increased its shareholding in the Technology company by 13.21% to 15.43 million shares with purchase of 1.8 million shares. This fresh investment now brings its stake to 12.40% valued currently at $1.14 billion. In addition, The Vanguard Group, Inc. raised its holdings by 0.31 million to 11.77 million shares. And BlackRock Fund Advisors has lifted its position by 9.14% or 0.96 million shares – to 11.43 million shares.
With over 3.57 million Wolfspeed Inc. (WOLF) shares trading Friday and a closing price of $62.52 on the day, the dollar volume was approximately $222.99 million. The shares have shown a negative half year performance of -43.82% and its price on 03/10/23 lost nearly -7.28%. Currently, there are 124.34M common shares owned by the public and among those 123.34M shares have been available to trade.
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An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 22 analysts who have offered their price forecasts for WOLF have a consensus price objective of $92.32. The analysts have set the share’s price value over the next 12 months at a high of $115.00 and a low of $60.00. The average price target is 31.16% above its recent price level and a downside to the estimated low will see the stock lose -4.2% over that period. But an upside of 45.63% will see the stock hit the forecast high price target while median target price for the stock is $95.00.
Insiders at the company have transacted a total of 39 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 27 of these insider trades were purchases, accounting for 126,653 shares. Insider sales of the common stock occurred on 12 occasions, with total insider shares sold totaling 58,972 shares.
The top 3 mutual fund holders in Wolfspeed Inc. are American Funds Growth Fund of Ame, American Funds Fundamental Invest, and American Funds New World Fund. American Funds Growth Fund of Ame owns 7.5 million shares of the company’s stock, all valued at over $554.53 million. The company bought an additional 2.18 million shares recently to bring their total holdings to about 6.03% of the shares outstanding. American Funds Fundamental Invest bought 3.6 million shares to see its total holdings expand to 6.27 million shares valued at over $463.66 million and representing 5.04% of the shares outstanding. American Funds New World Fund now owns shares totaling to 3.76% of the shares outstanding.
Shares of Wolfspeed Inc. (NYSE: WOLF) opened at $67.50, up $0.07 from a prior closing price of $67.43. However, the script later moved the day high at 67.51, down -7.28%. The company’s stock has a 5-day price change of -14.54% and -23.17% over the past three months. WOLF shares are trading -9.44% year to date (YTD), with the 12-month market performance down to -37.01% lower. It has a 12-month low price of $58.07 and touched a high of $125.48 over the same period. WOLF has an average intraday trading volume of 2.33 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -16.45%, -17.75%, and -26.86% respectively.
Institutional ownership of Wolfspeed Inc. (NYSE: WOLF) 124.34M shares outstanding. Mutual fund holders own 32.61%, while other institutional holders and individual stakeholders account for 78.15% and 0.78% respectively.
It has a market capitalization of $8.39B and a beta (3y monthly) value of 1.58. The earnings-per-share (ttm) stands at -$1.98. Price movements for the stock have been influenced by the stock’s volatility, which stands at 5.28% over the week and 4.78% over the month.
Analysts forecast that Wolfspeed Inc. (WOLF) will achieve an EPS of -$0.15 for the current quarter, -$0.11 for the next quarter and $0.53 for 2024. The lowest estimate earnings-per-share for the quarter is -$0.17 while analysts give the company a high EPS estimate of -$0.13. Comparatively, EPS for the current quarter was -$0.12 a year ago. Earnings per share for the fiscal year are expected to increase by 19.10%, and 229.30% over the next financial year.
If you are looking to buy this stock, then you may note that the average analyst recommendation by 22 brokerage firm advisors rate Wolfspeed Inc. (WOLF) as a “Moderate Buy” at a consensus score of 2.30. Specifically, 12 Wall Street analysts polled rate the stock as a buy, while 7 of the 22 advise that investors “hold,” and 1 rated it as a “Sell.”
Looking at the support for the WOLF, a number of firms have released research notes about the stock. Susquehanna stated their Neutral rating for the stock in a research note on December 12, 2022, with the firm’s price target at $90. JP Morgan coverage for the Wolfspeed Inc. (WOLF) stock in a research note released on October 24, 2022 offered a Overweight rating with a price target of $160. William Blair was of a view on October 17, 2022 that the stock is Outperform, while Canaccord Genuity gave the stock Buy rating on September 21, 2022, issuing a price target of $140. Evercore ISI on their part issued Outperform rating on September 13, 2022.
