Is Wolfspeed Stock a Good Investment?
Wolfspeed Investment Advice | WOLF |
- 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 Electronic 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 |
Strong Sell
Market Performance | Very Weak | Details | |
Volatility | Very risky | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Average | Details | |
Economic Sensitivity | Almost neglects market trends | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Not Available | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unavailable | 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 94.0% of the company outstanding shares are owned by institutional investors. The book value of Wolfspeed was at this time reported as 2.69. The company recorded a loss per share of 7.69. Wolfspeed 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 had very high historical volatility over the last 90 days | |
| 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 17.2 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. | |
| Over 94.0% of the company outstanding shares are owned by institutional investors |
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 |
Wolfspeed's market capitalization trends
The company currently falls under 'Small-Cap' category with a current market capitalization of 847.86 M.Wolfspeed's profitablity analysis
The company has Profit Margin (PM) of (1.26) %, 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 (0.56) %, which suggests for every $100 dollars of sales, it generated a net operating loss of $0.56.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.
Basic technical analysis of Wolfspeed Stock
As of the 20th of March, Wolfspeed maintains the Downside Deviation of 7.2, market risk adjusted performance of (0.11), and Mean Deviation of 5.83. 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 treynor ratio, as well as the relationship between the downside variance and kurtosis to decide if Wolfspeed is priced fairly, providing market reflects its latest price of 5.93 per share. Given that Wolfspeed has jensen alpha of 0.0153, 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 six 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.
| Valero Energy Partners Corp BondUS91914JAA07 | View | |
| MPLX LP 52 Corp BondUS55336VAL45 | View |
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 | 0.0144 | |||
| Market Risk Adjusted Performance | (0.11) | |||
| Mean Deviation | 5.83 | |||
| Semi Deviation | 6.65 | |||
| Downside Deviation | 7.2 | |||
| Coefficient Of Variation | 16191.09 | |||
| Standard Deviation | 8.59 | |||
| Variance | 73.77 | |||
| Information Ratio | 0.0137 | |||
| Jensen Alpha | 0.0153 | |||
| Total Risk Alpha | 0.7681 | |||
| Sortino Ratio | 0.0164 | |||
| Treynor Ratio | (0.12) | |||
| Maximum Drawdown | 48.97 | |||
| Value At Risk | (9.81) | |||
| Potential Upside | 14.48 | |||
| Downside Variance | 51.88 | |||
| Semi Variance | 44.19 | |||
| Expected Short fall | (7.05) | |||
| Skewness | 1.6 | |||
| Kurtosis | 5.91 |
| Risk Adjusted Performance | 0.0144 | |||
| Market Risk Adjusted Performance | (0.11) | |||
| Mean Deviation | 5.83 | |||
| Semi Deviation | 6.65 | |||
| Downside Deviation | 7.2 | |||
| Coefficient Of Variation | 16191.09 | |||
| Standard Deviation | 8.59 | |||
| Variance | 73.77 | |||
| Information Ratio | 0.0137 | |||
| Jensen Alpha | 0.0153 | |||
| Total Risk Alpha | 0.7681 | |||
| Sortino Ratio | 0.0164 | |||
| Treynor Ratio | (0.12) | |||
| Maximum Drawdown | 48.97 | |||
| Value At Risk | (9.81) | |||
| Potential Upside | 14.48 | |||
| Downside Variance | 51.88 | |||
| Semi Variance | 44.19 | |||
| Expected Short fall | (7.05) | |||
| Skewness | 1.6 | |||
| Kurtosis | 5.91 |
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.
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 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: Check out Your Current Watchlist to better understand how to build diversified portfolios, which includes a position in Wolfspeed. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in bureau of economic analysis. For more detail on how to invest in Wolfspeed Stock please use our How to Invest in Wolfspeed guide.You can also try the Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Is Electronic Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Wolfspeed. If investors know Wolfspeed will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Wolfspeed listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Wolfspeed is measured differently than its book value, which is the value of Wolfspeed that is recorded on the company's balance sheet. Investors also form their own opinion of Wolfspeed's value that differs from its market value or its book value, called intrinsic value, which is Wolfspeed's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Wolfspeed's market value can be influenced by many factors that don't directly affect Wolfspeed's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Wolfspeed's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Wolfspeed is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Wolfspeed's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.