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

Key Points

• Wolfspeed shares fell sharply, opening at $22.60 versus a prior close of $24.95, and were last trading near $22.72. The stock is down 12.5% and remains below its 50-day and 200-day moving averages.
• Analyst sentiment is generally cautious: Wolfspeed has a consensus “Hold” rating and an average price target of $23.33, with one Buy, three Hold, and one Sell rating.
• Wolfspeed beat quarterly EPS expectations, reporting a loss of $2.26 per share versus the expected $2.45 loss, but revenue fell 24.1% year over year to $149.6 million. Analysts project a full-year loss of $8.27 per share.

Wolfspeed, Inc. (NYSE:WOLF - Get Free Report)'s share price gapped down prior to trading on Friday. The stock had previously closed at $24.95, but opened at $22.60. Wolfspeed shares last traded at $22.7210, with a volume of 712,589 shares changing hands.

Analyst Upgrades and Downgrades

WOLF has been the subject of a number of research analyst reports. TD Cowen started coverage on Wolfspeed in a report on Thursday, August 20th. They set a "hold" rating and a $25.00 price objective for the company. Wall Street Zen cut Wolfspeed from a "sell" rating to a "strong sell" rating in a report on Saturday, September 19th. Susquehanna reduced their price target on Wolfspeed from $30.00 to $25.00 and set a "neutral" rating for the company in a research note on Wednesday, October 21st. Zacks Research raised Wolfspeed to a "hold" rating in a report on Friday, September 25th. Finally, Weiss Ratings lowered Wolfspeed from a "sell (d+)" rating to a "sell (d)" rating in a report on Friday, October 23rd. One analyst has rated the stock with a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, Wolfspeed currently has a consensus rating of "Hold" and a consensus target price of $23.33.

Wolfspeed Stock Down 12.5%

The stock has a 50 day moving average of $26.77 and a 200 day moving average of $30.12. The firm has a market cap of $1.16 billion and a price-to-earnings ratio of -1.38.

Wolfspeed (NYSE:WOLF - Get Free Report) last announced its quarterly earnings data 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 analyst estimates of $150.00 million. The company's quarterly revenue was down 24.1% on a year-over-year basis. During the same quarter in the previous year, the company earned ($0.77) earnings per share. As a group, analysts predict that Wolfspeed, Inc. will post -8.27 EPS for the current fiscal year.

Institutional Investors Weigh In On Wolfspeed

Large investors have recently modified their holdings of the business. Brooklands Fund Management Ltd acquired a new stake in Wolfspeed in the third quarter valued at about $25,376,000. Apollon Wealth Management LLC bought a new position in Wolfspeed in the third quarter valued at about $246,000. Steinberganna Wealth Management acquired a new position in Wolfspeed during the third quarter worth about $348,000. SBI Securities Co. Ltd. raised its stake in Wolfspeed by 96.8% during the third quarter. SBI Securities Co. Ltd. now owns 1,429 shares of the company's stock worth $40,000 after acquiring an additional 703 shares in the last quarter. Finally, Capstone Capital Management Ltd raised its stake in Wolfspeed by 35.6% during the third quarter. Capstone Capital Management Ltd now owns 71,275 shares of the company's stock worth $2,005,000 after acquiring an additional 18,721 shares in the last quarter.

About Wolfspeed

Wolfspeed, Inc is a semiconductor company focused on silicon carbide (SiC) technologies. Its products are designed to support the conversion and management of electrical power in applications that require high efficiency, high voltage, and operation at elevated temperatures.

The company develops and manufactures SiC power devices, including metal-oxide-semiconductor field-effect transistors, diodes, power modules, and related components. It also produces SiC materials such as wafers and epitaxial substrates used by semiconductor manufacturers.

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