Mizuho has recently reduced Wolfspeed Inc (WOLF) stock to Underperform rating, as announced on October 3, 2024, according to Finviz. Earlier, on August 22, 2024, TD Cowen had reiterated the stock to Hold, setting a price target of $15 for WOLF stock. Goldman also reiterated Buy rating with a price target of $28. Additionally, New Street reduced Neutral rating on August 7, 2024, with a target price of $18. William Blair analysts, in their report published on May 2, 2024, also reduced Mkt Perform rating for Wolfspeed Inc’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
Wolfspeed Inc (WOLF) Stock Trading Recap
On Wednesday, Wolfspeed Inc (WOLF) stock saw a modest uptick, ending the day at $8.92 which represents a slight increase of $0.05 or 0.56% from the prior close of $8.87. The stock opened at $8.89 and touched a low of $8.72 during the day, reaching a high of $9.23. The volume of shares traded was 9.55 million falling short of the average volume of 13.35 million.
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WOLF Stock Performance and Moving Averages
In recent trading, Wolfspeed Inc (WOLF) stock price has shown some volatility, fluctuating 38.51% over the last five trades and -42.27% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by -65.63%, and it has plunged by -16.09% in the previous three months. Currently, WOLF is trading at -4.51%, -17.08%, and -53.95% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, WOLF, a Technology sector stock, is trading -81.19% below its 52-week high but remains 46.23% above its 52-week low. The Average True Range (ATR) (14 days) of 1.23 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
Wolfspeed Inc’s Profitability and Valuation Ratios
Wolfspeed Inc’s profitability metrics reveal financial health. The company currently boasts an operating margin of -54.59% and a profit margin of -93.31%, with a gross margin of -65.63%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, Wolfspeed Inc’s market capitalization stands at $1.14 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. Additionally, the Price-to-Sales Ratio is 1.42, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 1.8, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 0.94% of Wolfspeed Inc (WOLF)’s shares, while financial institutions hold 125.31%.
Notable insider trades include Reynolds Neill, Executive Vice President & CFO at Wolfspeed Inc (WOLF), who sold 3000 shares on Dec 22 ’23, at $44.94 each, totaling $0.13 million. On Dec 15 ’23, Reynolds Neill, Executive Vice President & CFO, sold 3500 shares for $44 each, amounting to $0.15 million. Additionally, on Dec 08 ’23, Reynolds Neill sold 3500 shares at $40.14 each, generating $0.14 million.
