Wolfspeed (NYSE:WOLF) Shares Gap Down Following Analyst Downgrade

Shares of Wolfspeed, Inc. (NYSE:WOLF - Get Free Report) gapped down prior to trading on Friday after JPMorgan Chase & Co. lowered their price target on the stock from $43.00 to $35.00. The stock had previously closed at $27.86, but opened at $27.08. JPMorgan Chase & Co. currently has a neutral rating on the stock. Wolfspeed shares last traded at $26.97, with a volume of 401,378 shares trading hands.

Other analysts also recently issued research reports about the company. Susquehanna restated a "neutral" rating and issued a $35.00 target price on shares of Wolfspeed in a research note on Monday. Mizuho began coverage on Wolfspeed in a research report on Friday, April 5th. They set a "neutral" rating and a $30.00 price target on the stock. Wells Fargo & Company reiterated an "equal weight" rating and set a $30.00 price target (down previously from $55.00) on shares of Wolfspeed in a research report on Wednesday, April 3rd. Finally, Piper Sandler lowered their price target on Wolfspeed from $55.00 to $45.00 and set an "overweight" rating on the stock in a research report on Thursday, February 1st. One research analyst has rated the stock with a sell rating, eight have given a hold rating and five have assigned a buy rating to the company. Based on data from MarketBeat, the stock has an average rating of "Hold" and a consensus price target of $43.63.

Insider Activity

In related news, Director Darren R. Jackson purchased 10,000 shares of the business's stock in a transaction that occurred on Friday, February 2nd. The stock was purchased at an average price of $25.80 per share, with a total value of $258,000.00. Following the completion of the acquisition, the director now owns 49,021 shares in the company, valued at $1,264,741.80. The purchase was disclosed in a document filed with the SEC, which is available at this hyperlink. Company insiders own 0.62% of the company's stock.

Institutional Investors Weigh In On Wolfspeed

Several hedge funds and other institutional investors have recently added to or reduced their stakes in WOLF. Norges Bank acquired a new stake in Wolfspeed during the fourth quarter worth $308,701,000. FengHe Fund Management Pte. Ltd. grew its stake in shares of Wolfspeed by 438.9% in the fourth quarter. FengHe Fund Management Pte. Ltd. now owns 1,431,200 shares of the company's stock valued at $62,272,000 after buying an additional 1,165,600 shares in the last quarter. JANA Partners Management LP acquired a new stake in shares of Wolfspeed in the third quarter valued at $35,662,000. Cibc World Markets Corp acquired a new stake in shares of Wolfspeed in the fourth quarter valued at $34,808,000. Finally, Price T Rowe Associates Inc. MD grew its stake in shares of Wolfspeed by 743.6% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 515,337 shares of the company's stock valued at $22,423,000 after buying an additional 454,252 shares in the last quarter.

Wolfspeed Price Performance

The company has a debt-to-equity ratio of 4.50, a current ratio of 5.13 and a quick ratio of 4.58. The stock has a 50 day moving average price of $27.21 and a two-hundred day moving average price of $33.19. The firm has a market capitalization of $3.30 billion, a price-to-earnings ratio of -4.36 and a beta of 1.66.

Wolfspeed (NYSE:WOLF - Get Free Report) last issued its quarterly earnings data on Wednesday, January 31st. The company reported ($0.69) earnings per share for the quarter, beating analysts' consensus estimates of ($0.79) by $0.10. Wolfspeed had a negative return on equity of 19.35% and a negative net margin of 87.35%. The business had revenue of $208.40 million during the quarter, compared to analysts' expectations of $205.94 million. As a group, analysts expect that Wolfspeed, Inc. will post -3.05 EPS for the current year.

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.