Wolfspeed (NYSE:WOLF) Trading Down 5.3% – Here’s What Happened

Wolfspeed, Inc. (NYSE:WOLF) shares were down 5.3% during mid-day trading on Tuesday . The company traded as low as $3.40 and last traded at $3.31. Approximately 1,119,077 shares were traded during mid-day trading, a decline of 93% from the average daily volume of 15,113,293 shares. The stock had previously closed at $3.49.

Analyst Upgrades and Downgrades

A number of brokerages recently weighed in on WOLF. Piper Sandler reduced their price target on shares of Wolfspeed from $10.00 to $6.00 and set an “overweight” rating for the company in a research report on Friday, May 9th. Citigroup reissued a “sell” rating and issued a $3.00 target price (down previously from $7.00) on shares of Wolfspeed in a report on Friday, May 9th. Canaccord Genuity Group cut their price target on Wolfspeed from $18.00 to $10.00 and set a “buy” rating for the company in a research note on Thursday, January 30th. JPMorgan Chase & Co. reissued an “underweight” rating on shares of Wolfspeed in a research note on Friday, May 9th. Finally, Susquehanna cut their price objective on shares of Wolfspeed from $11.00 to $7.00 and set a “neutral” rating on the stock in a report on Wednesday, January 22nd. Five research analysts have rated the stock with a sell rating, six have assigned a hold rating and four have given a buy rating to the stock. According to MarketBeat, the company currently has an average rating of “Hold” and an average price target of $11.15.

Wolfspeed Stock Down 7.0%

The company has a debt-to-equity ratio of 17.26, a current ratio of 3.15 and a quick ratio of 2.47. The stock’s fifty day simple moving average is $3.67 and its 200-day simple moving average is $5.95. The stock has a market cap of $505.01 million, a P/E ratio of -0.42 and a beta of 1.62.

Wolfspeed (NYSE:WOLF) last issued its quarterly earnings results on Thursday, May 8th. The company reported ($0.72) EPS for the quarter, topping the consensus estimate of ($0.82) by $0.10. The firm had revenue of $185.40 million for the quarter, compared to analysts’ expectations of $190.03 million. Wolfspeed had a negative net margin of 125.96% and a negative return on equity of 70.84%. Wolfspeed’s revenue for the quarter was down 7.6% compared to the same quarter last year. During the same period in the previous year, the business earned ($0.62) earnings per share. On average, research analysts anticipate that Wolfspeed, Inc. will post -4 earnings per share for the current year.

Insider Buying and Selling

In other Wolfspeed news, CFO Neill Reynolds sold 13,909 shares of Wolfspeed stock in a transaction that occurred on Monday, April 28th. The shares were sold at an average price of $3.99, for a total value of $55,496.91. Following the completion of the sale, the chief financial officer now directly owns 195,257 shares in the company, valued at $779,075.43. The trade was a 6.65% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 0.84% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Wolfspeed

Several large investors have recently made changes to their positions in the business. Vanguard Group Inc. increased its stake in Wolfspeed by 18.8% during the first quarter. Vanguard Group Inc. now owns 18,913,793 shares of the company’s stock valued at $57,876,000 after acquiring an additional 2,989,503 shares during the period. Shah Capital Management bought a new stake in shares of Wolfspeed during the first quarter valued at approximately $6,586,000. Neuberger Berman Group LLC raised its stake in shares of Wolfspeed by 72.7% in the 1st quarter. Neuberger Berman Group LLC now owns 4,329,584 shares of the company’s stock valued at $13,723,000 after buying an additional 1,822,958 shares in the last quarter. Jump Financial LLC bought a new position in shares of Wolfspeed during the 1st quarter worth about $4,402,000. Finally, Frontier Capital Management Co. LLC boosted its position in shares of Wolfspeed by 94.2% during the 4th quarter. Frontier Capital Management Co. LLC now owns 2,050,778 shares of the company’s stock valued at $13,658,000 after acquiring an additional 995,020 shares in the last quarter.

About Wolfspeed

Wolfspeed, Inc operates as a powerhouse semiconductor company focuses on silicon carbide and gallium nitride (GaN) technologies in Europe, Hong Kong, China, rest of Asia-Pacific, the United States, and internationally. It offers silicon carbide and GaN materials, including silicon carbide bare wafers, epitaxial wafers, and GaN epitaxial layers on silicon carbide wafers to manufacture products for RF, power, and other applications.