Wolfspeed (NYSE:WOLF) Shares Down 7.7% - Here's Why

Key Points

• Wolfspeed shares fell 7.7% to about $32.57 in Monday trading, with volume substantially below the stock’s average daily volume.
• Analyst sentiment remains cautious: the stock has a consensus “Hold” rating and an average price target of $25, below its trading price, while several firms recently maintained or lowered their assessments.
• Wolfspeed reported a quarterly loss of $2.26 per share, narrowly beating estimates, but revenue declined 24.1% year over year to $149.6 million; analysts expect a full-year loss of $8.27 per share.

Wolfspeed, Inc. (NYSE:WOLF - Get Free Report)'s stock price was down 7.7% during trading on Monday. The stock traded as low as $32.05 and last traded at $32.5720. 638,983 shares traded hands during mid-day trading, a decline of 85% from the average session volume of 4,198,090 shares. The stock had previously closed at $35.28.

Wall Street Analysts Forecast Growth

A number of brokerages have recently weighed in on WOLF. Zacks Research raised shares of Wolfspeed to a "hold" rating in a research report on Friday, September 25th. Weiss Ratings upgraded shares of Wolfspeed from a "sell (d-)" rating to a "sell (d)" rating in a research report on Monday, August 24th. Susquehanna dropped their price target on Wolfspeed from $40.00 to $30.00 and set a "neutral" rating on the stock in a research report on Tuesday, July 21st. TD Cowen reiterated a "hold" rating and issued a $25.00 price objective on shares of Wolfspeed in a research report on Thursday, August 20th. Finally, Wall Street Zen cut Wolfspeed from a "sell" rating to a "strong sell" rating in a research note on Saturday, September 19th. One research analyst has rated the stock with a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Hold" and an average target price of $25.00.

Wolfspeed Stock Performance

The firm has a market capitalization of $1.80 billion and a P/E ratio of -2.15. The firm's 50-day moving average is $27.21 and its 200 day moving average is $34.70.

Wolfspeed (NYSE:WOLF - Get Free Report) last released its earnings results on Wednesday, August 19th. The company reported ($2.26) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($2.45) by $0.19. The firm had revenue of $149.60 million for the quarter, compared to the consensus estimate of $150.00 million. During the same quarter last year, the company posted ($0.77) EPS. Wolfspeed's revenue for the quarter was down 24.1% on a year-over-year basis. As a group, research analysts expect that Wolfspeed, Inc. will post -8.27 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the company. Renesas Electronics America Inc. acquired a new position in Wolfspeed during the 2nd quarter worth approximately $813,126,949. First Trust Advisors LP grew its stake in shares of Wolfspeed by 60.6% during the 1st quarter. First Trust Advisors LP now owns 98,874 shares of the company's stock worth $1,614,000 after acquiring an additional 37,313 shares in the last quarter. Lazard Asset Management LLC acquired a new stake in shares of Wolfspeed in the first quarter valued at approximately $1,796,000. Readystate Asset Management LP acquired a new stake in shares of Wolfspeed in the second quarter valued at approximately $6,841,000. Finally, Ratan Capital Management LP bought a new stake in shares of Wolfspeed in the second quarter worth $2,467,000.

About Wolfspeed

Wolfspeed, Inc NYSE: WOLF develops and manufactures semiconductor technologies based primarily on silicon carbide, a wide-bandgap material designed to support efficient power conversion and high-temperature operation. Its products are used in applications where reduced energy loss, higher power density and improved thermal performance are important.

The company's offerings include silicon carbide wafers and materials, power modules, metal-oxide-semiconductor field-effect transistors (MOSFETs), diodes and other power semiconductor devices.

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