Wolfspeed (NYSE:WOLF) Shares Gap Down - What's Next?

Key Points

• Wolfspeed shares fell sharply, opening at $26.13 versus a prior close of $27.40 and later trading near $25.92. The stock remains below its 50-day and 200-day moving averages of $32.04 and $33.27.
• Analysts maintain a generally cautious outlook, with a consensus “Hold” rating and average price target of $25.00; ratings include one Buy, three Holds, and one Sell.
• Wolfspeed beat quarterly loss expectations, reporting an adjusted loss of $2.26 per share versus estimates of $2.45, but revenue fell 24.1% year over year to $149.6 million.

Shares of Wolfspeed, Inc. (NYSE:WOLF - Get Free Report) gapped down before the market opened on Tuesday . The stock had previously closed at $27.40, but opened at $26.13. Wolfspeed shares last traded at $25.9210, with a volume of 321,878 shares.

Wall Street Analysts Forecast Growth

WOLF has been the subject of several research analyst reports. Weiss Ratings upgraded Wolfspeed from a "sell (d-)" rating to a "sell (d)" rating in a research note on Monday, August 24th. TD Cowen reaffirmed a "hold" rating and issued a $25.00 price target on shares of Wolfspeed in a report on Thursday, August 20th. Susquehanna reduced their price objective on shares of Wolfspeed from $40.00 to $30.00 and set a "neutral" rating on the stock in a research note on Tuesday, July 21st. Finally, Wall Street Zen raised shares of Wolfspeed from a "strong sell" rating to a "sell" rating in a report on Saturday, August 22nd. One equities research analyst has rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average target price of $25.00.

Wolfspeed Stock Performance

The business has a fifty day simple moving average of $32.04 and a 200 day simple moving average of $33.27. The company has a market cap of $1.38 billion and a P/E ratio of -1.65.

Wolfspeed (NYSE:WOLF - Get Free Report) last issued its quarterly earnings results on Wednesday, August 19th. The company reported ($2.26) earnings per share for the quarter, beating analysts' consensus estimates of ($2.45) by $0.19. The firm had revenue of $149.60 million during the quarter, compared to the consensus estimate of $150.00 million. During the same quarter last year, the firm posted ($0.77) earnings per share. Wolfspeed's revenue was down 24.1% compared to the same quarter last year.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the business. Renesas Electronics America Inc. bought a new stake in shares of Wolfspeed during the 2nd quarter valued at about $813,126,949. First Trust Advisors LP boosted its position in Wolfspeed by 60.6% during the 1st quarter. First Trust Advisors LP now owns 98,874 shares of the company's stock valued at $1,614,000 after purchasing an additional 37,313 shares during the period. Lazard Asset Management LLC bought a new position in Wolfspeed during the 1st quarter worth $1,796,000. Panview Capital Ltd bought a new position in Wolfspeed during the 2nd quarter worth $6,952,000. Finally, Prescott Group Capital Management L.L.C. acquired a new stake in Wolfspeed in the fourth quarter worth $6,416,000.

About Wolfspeed

Wolfspeed, Inc NYSE: WOLF is a leading developer and manufacturer of silicon carbide (SiC) and gallium nitride (GaN) semiconductor materials and devices. The company's product portfolio addresses high-growth markets such as electric vehicles, renewable energy, fast-charging infrastructure, aerospace and defense, and telecommunications. By leveraging proprietary materials and device designs, Wolfspeed delivers solutions that offer improved energy efficiency, higher power density and greater thermal performance compared to conventional silicon-based semiconductors.

Founded as part of Cree, Inc and spun off to form an independent public company in October 2021, Wolfspeed traces its roots to the mid-1980s when it pioneered the commercial use of wide-bandgap semiconductor technology.

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