Wolf speed stock

**Wolfspeed's stock performance and valuation analysis**: 1. **Technical Analysis Indicators**: - The stock's technical indicators are mixed. The Relative Strength Index (RSI) is at 61.92, indicating the stock is neither overbought nor oversold. The Moving Average Convergence Divergence (MACD) is 0.1, suggesting a slight bullish momentum. - The stock is trading above its 5-day, 10-day, and 20-day moving averages, which are $1.5, $1.49, and $1.32 respectively. This indicates a short-term upward trend. - However, the stock is below its 30-day, 50-day, and 60-day moving averages, which are $1.25, $1.63, and $2.01 respectively. This suggests a longer-term downward trend. - The 120-day, 200-day, and 250-day moving averages are $3.37, $5.75, and $6.95 respectively. The stock is significantly below these long-term averages, indicating a bearish trend in the long run. |code|Ticker|Name|Date|Boll|RSI|KDJ|MACD|market_code| |---|---|---|---|---|---|---|---|---| |WOLF|WOLF.N|Wolfspeed|20250723|1.3191|61.9243|42.3032|0.0970|169| |code|Ticker|Name|Date|Moving Average|market_code| |---|---|---|---|---|---| |WOLF|WOLF.N|Wolfspeed|20250723|1.5000|169| 2. **Financial Performance and Growth Rates**: - Wolfspeed reported a net income of -$285.5 million and total revenue of $185.4 million for the latest quarter. The company's diluted EPS was -$1.86. - The net income growth rate is -91.74%, and the revenue growth rate is -7.62%. The diluted EPS growth rate is -57.63%. - Over the 3 years, the company has experienced a cumulative compound growth of 107.4% in net income, 18.78% in revenue, and 102.97% in diluted EPS. |code|Ticker|Name|Date|Total Revenue|Net Income|Diluted EPS|market_code| |---|---|---|---|---|---|---|---| |WOLF|WOLF.N|Wolfspeed|2024 Q4|2.007E8|-1.749E8||169| |WOLF|WOLF.N|Wolfspeed|2025 Q1|1.947E8|-2.822E8|-2.23|169| |WOLF|WOLF.N|Wolfspeed|2025 Q2|1.805E8|-3.722E8|-2.88|169| |WOLF|WOLF.N|Wolfspeed|2025 Q3|1.854E8|-2.855E8|-1.86|169| |code|Ticker|Name|Date|Net Income YoY|Total Revenue YoY|Diluted EPS YoY|market_code| |---|---|---|---|---|---|---|---| |WOLF|WOLF.N|Wolfspeed|2024 Q4|-54.36893203883495|-0.986679822397632||169| |WOLF|WOLF.N|Wolfspeed|2025 Q1|28.68334596916856|-1.3677811550151975|29.430379746835445|169| |WOLF|WOLF.N|Wolfspeed|2025 Q2|-157.22183828610918|-13.387715930902111|-150.43478260869568|169| |WOLF|WOLF.N|Wolfspeed|2025 Q3|-91.73942243116186|-7.623318385650224|-57.62711864406781|169| 3. **Stock Valuation and Analyst Sentiment**: - The stock has a current price of $1.71, with analysts setting a price target of $6, implying a significant upside. - However, the stock is rated "Sell" by some analysts, with concerns about its financial health and potential for a value trap. - The stock's recent surge is attributed to a new U.S.-Japan trade deal, which could benefit Wolfspeed due to its significant ties with Japanese chip manufacturers. 4. **Financial Health and Restructuring**: - Wolfspeed is facing financial distress, with a severe Altman Z-score of -0.6, indicating a high risk of bankruptcy. - The company has filed for Chapter 11 bankruptcy to restructure its significant debt burden, aiming to reduce debt by 70% and interest payments by 60%. - Despite the restructuring, the company's stock is still considered a high-risk investment, with potential for significant dilution of existing shareholders. 5. **Dividend and Dividend Growth**: - Wolfspeed has not paid any dividends in the recent past, with a dividend yield of 0%. - The company's dividend growth rate is 0.00% over the 3 years, indicating no dividend growth. In conclusion, while Wolfspeed's stock has shown a significant surge due to strategic developments and a new trade agreement, its financial health remains fragile, and its stock is considered a high-risk investment. The company's restructuring plan could potentially improve its financial position, but it also poses risks to existing shareholders. Investors should exercise caution and consider the potential for significant dilution and volatility.