Wolfspeed (NYSE:WOLF) Shares Down 9.1% - Should You Sell?

Key Points

• Wolfspeed shares fell 9.1% to about $27.83, near the 50-day moving average of $28.11 and well below the 200-day average of $35.21.
• Analyst sentiment is cautious: the stock carries a consensus “Hold” rating and an average price target of $25, with recent downgrades including Susquehanna lowering its target from $40 to $30.
• Wolfspeed beat quarterly EPS expectations, reporting a loss of $2.26 versus the expected $2.45 loss, 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) shares fell 9.1% during trading on Monday. The stock traded as low as $28.08 and last traded at $27.8330. 957,415 shares were traded during mid-day trading, a decline of 78% from the average daily volume of 4,297,762 shares. The stock had previously closed at $30.61.

Analyst Upgrades and Downgrades

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

Wolfspeed Price Performance

The stock's 50-day moving average is $28.11 and its 200 day moving average is $35.21. The company has a market cap of $1.44 billion and a PE ratio of -1.72.

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

Institutional Trading of Wolfspeed

Institutional investors have recently made changes to their positions in the business. FNY Investment Advisers LLC purchased a new position in Wolfspeed during the 2nd quarter worth $204,000. AXQ Capital LP acquired a new position in Wolfspeed during the 2nd quarter valued at about $208,000. Concurrent Investment Advisors LLC acquired a new position in Wolfspeed during the 2nd quarter valued at about $229,000. Royal Bank of Canada purchased a new stake in Wolfspeed in the first quarter valued at about $89,000. Finally, WINTON GROUP Ltd purchased a new stake in Wolfspeed in the second quarter valued at about $299,000.

Wolfspeed Company Profile

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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