Wolfspeed (NYSE:WOLF) Stock Price Down 7.3% - Here's What Happened

Key Points

• Wolfspeed shares fell 7.3% to about $25.29 in Thursday’s midday trading, with volume down sharply versus the average daily level.
• Analyst sentiment remains cautious: Wolfspeed has a consensus “Hold” rating and a $25.00 price target, with recent target cuts from Susquehanna and TD Cowen maintaining its $25 objective.
• The company beat quarterly EPS expectations, reporting a loss of $2.26 per share versus estimates of a $2.45 loss, but revenue declined 24.1% year over year to $149.6 million.

Wolfspeed, Inc. (NYSE:WOLF - Get Free Report)'s share price was down 7.3% during mid-day trading on Thursday . The company traded as low as $25.32 and last traded at $25.2920. Approximately 269,047 shares were traded during mid-day trading, a decline of 94% from the average daily volume of 4,347,300 shares. The stock had previously closed at $27.28.

Analyst Ratings Changes

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

Wolfspeed Trading Down 6.5%

The firm has a market capitalization of $1.35 billion and a P/E ratio of -1.62. The company's fifty day simple moving average is $29.38 and its 200 day simple moving average is $33.72.

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 analysts' consensus estimates of ($2.45) by $0.19. The company had revenue of $149.60 million for the quarter, compared to the consensus estimate of $150.00 million. During the same period in the previous year, the firm posted ($0.77) EPS. The company's revenue for the quarter was down 24.1% on a year-over-year basis.

Institutional Investors Weigh In On Wolfspeed

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Canada Pension Plan Investment Board purchased a new position in Wolfspeed during the second quarter valued at $34,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. purchased a new stake in shares of Wolfspeed in the 2nd quarter worth about $34,000. Summit Securities Group LLC increased its stake in shares of Wolfspeed by 71.0% in the 4th quarter. Summit Securities Group LLC now owns 2,204 shares of the company's stock worth $38,000 after acquiring an additional 915 shares in the last quarter. Marex Group plc bought a new position in shares of Wolfspeed in the 2nd quarter worth about $44,000. Finally, WINTON GROUP Ltd purchased a new position in Wolfspeed during the 2nd quarter valued at about $47,000.

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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