Wolfspeed (NYSE:WOLF) Trading Down 4.8% - Here's Why

Key Points

• Wolfspeed shares fell 4.8% to about $25.37 in light trading, well below the stock’s 50-day and 200-day moving averages of $31.20 and $33.40.
• Analysts remain cautious, with the stock carrying a consensus “Hold” rating and a $25 average price target; Susquehanna recently cut its target from $40 to $30.
• Wolfspeed’s latest results beat loss estimates, reporting adjusted EPS of $(2.26) versus expectations of $(2.45), but revenue fell 24.1% year over year to $149.6 million.

Wolfspeed, Inc. (NYSE:WOLF - Get Free Report) shares were down 4.8% during trading on Thursday . The stock traded as low as $25.60 and last traded at $25.3650. Approximately 163,147 shares changed hands during mid-day trading, a decline of 96% from the average daily volume of 4,399,806 shares. The stock had previously closed at $26.65.

Wall Street Analysts Forecast Growth

A number of research analysts recently weighed in on the company. Wall Street Zen raised Wolfspeed from a "strong sell" rating to a "sell" rating in a report on Saturday, August 22nd. Weiss Ratings raised Wolfspeed from a "sell (d-)" rating to a "sell (d)" rating in a report on Monday, August 24th. TD Cowen restated a "hold" rating and set a $25.00 target price on shares of Wolfspeed in a research report on Thursday, August 20th. Finally, Susquehanna lowered their price target 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. One research analyst has rated the stock with a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus target price of $25.00.

Wolfspeed Stock Performance

The firm has a market capitalization of $1.43 billion and a PE ratio of -1.71. The firm's 50-day moving average is $31.20 and its 200 day moving average is $33.40.

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

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in WOLF. Summit Securities Group LLC raised its position in shares of Wolfspeed by 71.0% in the fourth quarter. Summit Securities Group LLC now owns 2,204 shares of the company's stock valued at $38,000 after buying an additional 915 shares during the last quarter. FNY Investment Advisers LLC acquired a new stake in Wolfspeed during the second quarter worth approximately $204,000. AXQ Capital LP purchased a new stake in Wolfspeed in the 2nd quarter worth approximately $208,000. Concurrent Investment Advisors LLC purchased a new stake in Wolfspeed in the 2nd quarter worth approximately $229,000. Finally, Royal Bank of Canada acquired a new position in Wolfspeed in the 1st quarter valued at $89,000.

Wolfspeed Company Profile

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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