Wolfspeed Adds 20% Intraday, Extending Two-Session Gain to 60%+ After Hitting 26-Year Low

WOLF gained as much as 20.7% Monday to a $10.19 session high, up 67% from the $6.10 intraday low it reached last Thursday. The stock hadn't traded that cheaply since 1998.

Shares later pulled back some on Monday, but still closed the day 17.4% higher at $9.90.

Wolfspeed rebounded amid word that several insiders had bought stock in the struggling firm. Published reports indicate that company Director Glenda Dorchak acquired nearly 3,600 shares last Friday, following the lead of other insiders who purchased stock on Thursday.

The company also got a boost on Friday when Roth MKM analyst Craig Irwin reportedly kept a "Buy" rating and $20 price target on the stock after meeting with company management.

However, WOLF is still down more than 40% from its $17.45 near-term intraday high reached just some five weeks ago on Oct. 18. Shares have also shed more than 90% from their $142.33 all-time high, which they hit in 2021.

Wolfspeed has been generally falling amid what management has described as weak sales in the industrial and energy sectors, coupled with slower-than-expected electric-vehicle adoption that hurt its chip sales.

So far this month, the company has reported a $2.33 per share loss for the three months ended Sept. 29, issued poorly received forward guidance and saw its CEO step down. WOLF also announced plans to close some sites and lay off 20% of its workers.