Is Wolfspeed Stock a Good Investment?

Wolfspeed Investment Advice

WOLF

To provide specific investment advice or recommendations on Wolfspeed stock, we recommend investors consider the following general factors when evaluating Wolfspeed. This will help you to make an informed decision on whether to include Wolfspeed in one of your diversified portfolios:

Examine Wolfspeed's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
Research Wolfspeed's leadership team and their track record. Good management can help Wolfspeed navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
Consider the overall health of the Semiconductors & Semiconductor Equipment space and any emerging trends that could impact Wolfspeed's business and its evolving consumer preferences.
Compare Wolfspeed's performance and market position to its competitors. Analyze how Wolfspeed is positioned in terms of product offerings, innovation, and market share.
Check if Wolfspeed pays a dividend and its dividend yield and payout ratio.
Review what financial analysts are saying about Wolfspeed's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.

It's important to note that investing in Wolfspeed stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Wolfspeed is a good investment.

Sell

Buy

Cautious Hold

We provide recommendation to complement the prevalent expert consensus on Wolfspeed. Our dynamic recommendation engine utilizes a multidimensional algorithm to analyze the firm's potential to grow using all technical and fundamental data available at the time. To make sure Wolfspeed is not overpriced, please check out all Wolfspeed fundamentals, including its price to book, total debt, target price, as well as the relationship between the ebitda and cash flow from operations . Given that Wolfspeed has a price to earning of (3.54) X, we strongly advise you to confirm Wolfspeed market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevalent risk tolerance and investing horizon.

Market Performance	Very Weak	Details
Volatility	Slightly risky	Details
Hype Condition	Over hyped	Details
Current Valuation	Undervalued	Details
Odds Of Distress	Average	Details
Economic Sensitivity	Hyperactively responds to market trends	Details
Investor Sentiment	Interested	Details
Analyst Consensus	Buy	Details
Financial Strenth (F Score)	Poor	Details
Financial Leverage	Not Rated	Details
Reporting Quality (M-Score)	Unlikely Manipulator	Details

Examine Wolfspeed Stock

Researching Wolfspeed's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 99.0% of the company outstanding shares are owned by institutional investors. The company has Price to Book (P/B) ratio of 1.71. Historically many companies with similar price-to-book (P/B) ratio do better than the market in the long run. Wolfspeed recorded a loss per share of 5.8. The entity had 2:1 split on the 11th of December 2000.

To determine if Wolfspeed is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Wolfspeed's research are outlined below:

	Wolfspeed generated a negative expected return over the last 90 days
	Wolfspeed has high historical volatility and very poor performance
	Wolfspeed has high likelihood to experience some financial distress in the next 2 years
	The company reported the previous year's revenue of 807.2 M. Net Loss for the year was (573.6 M) with profit before overhead, payroll, taxes, and interest of 119.3 M.
	Wolfspeed currently holds about 1.2 B in cash with (725.6 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 9.65, which can makes it an attractive takeover target, given it will continue generating positive cash flow.
	Wolfspeed has a poor financial position based on the latest SEC disclosures
	Over 99.0% of the company outstanding shares are owned by institutional investors
	Latest headline from gurufocus.com: Lost Money on Wolfspeed, Inc. Join Class Action Suit Seeking Recovery -- Contact Levi ...

Wolfspeed Quarterly Accounts Payable

73.5 Million

Wolfspeed uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Wolfspeed. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Wolfspeed's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.

	31st of January 2024 Upcoming Quarterly Report	View
	24th of April 2024 Next Financial Report	View
	31st of December 2023 Next Fiscal Quarter End	View
	21st of August 2024 Next Fiscal Year End	View
	30th of September 2023 Last Quarter Report	View
	30th of June 2023 Last Financial Announcement	View

Earnings surprises can significantly impact Wolfspeed's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Wolfspeed's investors have experienced.

Reported	Fiscal Date	Estimated EPS	Reported EPS	Surprise
2020-01-29	2019-12-31	-0.09	-0.1	-0.01	11
2019-08-20	2019-06-30	0.1	0.11	0.01	10
2016-10-18	2016-09-30	0.1	0.09	-0.01	10
2007-10-18	2007-09-30	0.08	0.07	-0.01	12
2007-08-07	2007-06-30	0.06	0.07	0.01	16
2002-10-17	2002-09-30	0.04	0.05	0.01	25
2002-07-30	2002-06-30	0.02	0.01	-0.01	50
2002-01-10	2001-12-31	0.09	0.08	-0.01	11

Know Wolfspeed's Top Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Wolfspeed is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Wolfspeed backward and forwards among themselves. Wolfspeed's institutional investor refers to the entity that pools money to purchase Wolfspeed's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.

		Shares
Two Sigma Investments Llc	2024-09-30	2.5 M
Geode Capital Management, Llc	2024-09-30	2 M
Voloridge Investment Management, Llc	2024-09-30	1.9 M
Ubs Asset Mgmt Americas Inc	2024-09-30	1.9 M
Citadel Advisors Llc	2024-09-30	1.8 M
Fmr Inc	2024-09-30	1.7 M
Bank Of America Corp	2024-06-30	1.6 M
Select Equity Group Lp	2024-09-30	1.6 M
Jpmorgan Chase & Co	2024-06-30	1.3 M
Vanguard Group Inc	2024-09-30	15.6 M
Blackrock Inc	2024-06-30	13.2 M

Note, although Wolfspeed's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Wolfspeed's market capitalization trends

The company currently falls under 'Mid-Cap' category with a current market capitalization of 1.08 B.

Market Cap

3.4 Billion

Wolfspeed's profitablity analysis

	Last Reported	Projected for Next Year
Return On Tangible Assets	(0.11)	(0.11)
Return On Capital Employed	(0.05)	(0.05)
Return On Assets	(0.11)	(0.10)
Return On Equity	(0.98)	(0.93)

The company has Profit Margin (PM) of (0.93) %, which may suggest that it does not properly executes on its current pricing strategies or is unable to control all of the operational costs. This is way below average. Similarly, it shows Operating Margin (OM) of (0.6) %, which suggests for every $100 dollars of sales, it generated a net operating loss of $0.6.

Determining Wolfspeed's profitability involves analyzing its financial statements and using various financial metrics to determine if Wolfspeed is a good buy. For example, gross profit margin measures Wolfspeed's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Wolfspeed's profitability and make more informed investment decisions.

Wolfspeed's Earnings Breakdown by Geography

Evaluate Wolfspeed's management efficiency

Wolfspeed has return on total asset (ROA) of (0.0334) % which means that it has lost $0.0334 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of (0.7812) %, meaning that it created substantial loss on money invested by shareholders. Wolfspeed's management efficiency ratios could be used to measure how well Wolfspeed manages its routine affairs as well as how well it operates its assets and liabilities. The Wolfspeed's current Return On Tangible Assets is estimated to increase to -0.11. The Wolfspeed's current Return On Capital Employed is estimated to increase to -0.05. At this time, Wolfspeed's Other Current Assets are most likely to decrease significantly in the upcoming years. The Wolfspeed's current Total Current Assets is estimated to increase to about 3.1 B, while Net Tangible Assets are projected to decrease to roughly 1.8 B.

	Last Reported	Projected for Next Year
Book Value Per Share	7.02	10.08
Tangible Book Value Per Share	3.97	7.30
Enterprise Value Over EBITDA	(55.64)	(58.42)
Price Book Value Ratio	3.21	3.11
Enterprise Value Multiple	(55.64)	(58.42)
Price Fair Value	3.21	3.11
Enterprise Value	6.6 B	3.4 B

The decision-making processes within Wolfspeed are key to its success in a competitive market. By evaluating these processes, we assess the stock's potential for future gains.

Beta

1.461

Basic technical analysis of Wolfspeed Stock

As of the 24th of November, Wolfspeed maintains the Standard Deviation of 9.89, market risk adjusted performance of (0.02), and Mean Deviation of 6.67. Relative to fundamental indicators, the technical analysis model lets you check existing technical drivers of Wolfspeed, as well as the relationship between them. Please check out Wolfspeed information ratio and potential upside to decide if Wolfspeed is priced fairly, providing market reflects its latest price of 8.44 per share. Given that Wolfspeed has information ratio of (0.03), we strongly advise you to confirm Wolfspeed's prevalent market performance to make sure the company can sustain itself at a future point.

Wolfspeed's insider trading activities

Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Wolfspeed insiders, such as employees or executives, is commonly permitted as long as it does not rely on Wolfspeed's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Wolfspeed insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.

		Gregg Lowe over three months ago Disposition of 4187 shares by Gregg Lowe of Wolfspeed subject to Rule 16b-3
		Marvin Riley over six months ago Acquisition by Marvin Riley of 444 shares of Wolfspeed at 27.0308 subject to Rule 16b-3
		Thomas Werner over a year ago Acquisition by Thomas Werner of 5383 shares of Wolfspeed subject to Rule 16b-3

Wolfspeed's Outstanding Corporate Bonds

Wolfspeed issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Wolfspeed uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Wolfspeed bonds can be classified according to their maturity, which is the date when Wolfspeed has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.

	Boeing Co 2196 Corp Bond US097023DG73	View
	HSBC Holdings PLC Corp Bond US404280DR76	View
	MGM Resorts International Corp Bond US552953CD18	View

View All Wolfspeed Corporate Bonds

Understand Wolfspeed's technical and predictive indicators

Using predictive indicators to make investment decisions involves analyzing Wolfspeed's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.

	Risk Adjusted Performance	(0)
	Market Risk Adjusted Performance	(0.02)
	Mean Deviation	6.67
	Coefficient Of Variation	(7,494)
	Standard Deviation	9.89
	Variance	97.74
	Information Ratio	(0.03)
	Jensen Alpha	(0.73)
	Total Risk Alpha	(1.70)
	Treynor Ratio	(0.03)
	Maximum Drawdown	60.51
	Value At Risk	(11.56)
	Potential Upside	20.41
	Skewness	(0.03)
	Kurtosis	4.25

	Risk Adjusted Performance	(0)
	Market Risk Adjusted Performance	(0.02)
	Mean Deviation	6.67
	Coefficient Of Variation	(7,494)
	Standard Deviation	9.89
	Variance	97.74
	Information Ratio	(0.03)
	Jensen Alpha	(0.73)
	Total Risk Alpha	(1.70)
	Treynor Ratio	(0.03)
	Maximum Drawdown	60.51
	Value At Risk	(11.56)
	Potential Upside	20.41
	Skewness	(0.03)
	Kurtosis	4.25

Consider Wolfspeed's intraday indicators

Wolfspeed intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Wolfspeed stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.

	Accumulation Distribution	0.22
	Daily Balance Of Power	1.052632
	Rate Of Daily Change	1.31
	Day Median Price	7.77
	Day Typical Price	7.99
	Market Facilitation Index	1.9
	Price Action Indicator	1.67
	Period Momentum Indicator	2.0
	Relative Strength Index	42.31

Wolfspeed Corporate Filings

8K	21st of November 2024 Report filed with the SEC to announce major events that shareholders should know about	View Verify
	20th of November 2024 Other Reports	View Verify
13A	14th of November 2024 The form used by investors holding more than 5% of a company's stock, to report their beneficial ownership pursuant to Rule 13d-1 or Rule 13d-2 under the Securities Exchange Act of 1934	View Verify
13A	13th of November 2024 An amended filing to the original Schedule 13G	View Verify

Wolfspeed time-series forecasting models is one of many Wolfspeed's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Wolfspeed's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

Wolfspeed Stock media impact

Far too much social signal, news, headlines, and media speculation about Wolfspeed that are available to investors today. That information is available publicly through Wolfspeed media outlets and privately through word of mouth or via Wolfspeed internal channels. However, regardless of the origin, that massive amount of Wolfspeed data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.

A primary focus of Wolfspeed news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Wolfspeed relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Wolfspeed's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Wolfspeed alpha.

Wolfspeed Sentiment by Major News Outlets

Investor sentiment, mood or attitude towards Wolfspeed can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.

Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.

Wolfspeed Historical Investor Sentiment

Investor biases related to Wolfspeed's public news can be used to forecast risks associated with an investment in Wolfspeed. The trend in average sentiment can be used to explain how an investor holding Wolfspeed can time the market purely based on public headlines and social activities around Wolfspeed. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.

Wolfspeed's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Wolfspeed and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Wolfspeed news discussions. The higher the estimate score, the more favorable the investor's outlook on Wolfspeed.

Wolfspeed Corporate Management

John Palmour	Founder Wolfspeed	Profile
Rick Madormo	Senior Marketing	Profile
Marvin Riley	Independent Director	Profile
Priya Almelkar	Senior Officer	Profile
David Costar	VP Officer	Profile
Margaret Chadwick	Chief Officer	Profile

Already Invested in Wolfspeed?

The danger of trading Wolfspeed is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Wolfspeed is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Wolfspeed. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Wolfspeed is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.

When determining whether Wolfspeed is a strong investment it is important to analyze Wolfspeed's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Wolfspeed's future performance. For an informed investment choice regarding Wolfspeed Stock, refer to the following important reports: