TLDR
- Wolfspeed (WOLF) hit a new 52-week high of $36.60, up ~24.6% from the prior close of $29.53
- The stock is up 70% year-to-date and 34% over the past year
- Wolfspeed completed a debt refinancing, raising ~$475.9 million in gross proceeds
- Despite the rally, analysts hold a consensus “Reduce” rating with an average price target of $14.33
- The company remains unprofitable, with a negative gross profit margin of -14% and EPS of ($6.11) last quarter
Wolfspeed stock hit a new 52-week high of $36.60 on Friday, closing at $36.49 — a gain of roughly 24.6% from the prior day’s close of $29.53. Volume was heavy, with over 4.7 million shares changing hands.
The move puts WOLF up 70% year-to-date and 34% over the past 12 months. That’s a sharp turnaround for a stock that had been trading near its 50-day and 200-day moving averages of around $20.60.
The rally comes on the heels of a major debt refinancing deal. Wolfspeed closed private placements of convertible notes and equity securities, pulling in approximately $475.9 million in gross proceeds.
The company used those proceeds to redeem roughly $475.9 million of its Senior Secured Notes due in 2030. The refinancing included $379 million in 3.5% Convertible 1.5 Lien Senior Secured Notes due 2031, plus around $96.9 million in common stock and pre-funded warrants.
It’s the kind of move that buys time — and the market appears to be rewarding it, at least for now.
Analysts Remain Cautious
Wall Street isn’t exactly rushing to celebrate. The consensus rating on WOLF sits at “Reduce,” with an average price target of $14.33 — well below where the stock is currently trading.
Of six analysts covering the stock, one has a Buy rating, two have Hold ratings, and three have Sell ratings. Piper Sandler is the most bullish, reiterating an “Overweight” rating with a $20 price target. Susquehanna holds a “Neutral” rating with a $20 target, while Weiss Ratings maintains a “Sell” rating.
The gap between the current price and the average analyst target is hard to ignore.
Fundamentals Still a Concern
The underlying numbers haven’t caught up to the stock price. In its most recent quarterly results, reported January 28, Wolfspeed posted EPS of ($6.11), missing the consensus estimate of ($0.74) by $5.37.
Revenue was down 6.6% year-over-year for the quarter. The company carries a negative gross profit margin of -14% and a price-to-earnings ratio of -5.23.
Market cap currently sits at around $1.66 billion.
InvestingPro flags the stock as potentially undervalued at current levels, while also pointing out the company’s lack of profitability.
Leadership Changes in the Mix
Wolfspeed also announced a string of leadership appointments. Yasuhisa Harita will take over as regional president for Asia Pacific, effective June 1, 2026. Daihui Yu was named regional president for Greater China.
Brad Kohn will return to the company as Executive Vice President, Chief Legal and Global Affairs Officer.
Several institutional investors have been moving into the stock. Renesas Electronics America acquired a new stake worth approximately $293.4 million in Q4. Goldman Sachs boosted its position by 176.7% in Q1, while UBS Group increased its stake by over 3,400% in Q4.
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