Wolfspeed (NYSE:WOLF) Rating Lowered to "Strong Sell" at Wall Street Zen

Key Points

• Wall Street Zen downgraded Wolfspeed to “strong sell” from “sell.” Susquehanna also lowered its price target to $30 while maintaining a neutral rating; overall, analysts hold a “Hold” consensus with an average target of $25.
• Wolfspeed shares opened at $23.48, well below their 50-day moving average of $43.62, while the company reported a quarterly loss of $3.26 per share and a 19% year-over-year revenue decline to $150.2 million.
• Despite the negative ratings and operating losses, several institutional investors recently increased their Wolfspeed positions or initiated new stakes, including Summit Securities Group, Atlas Brown and Royal Bank of Canada.

Wolfspeed (NYSE:WOLF - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "sell" rating to a "strong sell" rating in a report issued on Saturday.

Several other research analysts have also weighed in on the company. Susquehanna reduced their target price on Wolfspeed from $40.00 to $30.00 and set a "neutral" rating on the stock in a report on Tuesday, July 21st. Weiss Ratings restated a "sell (d-)" rating on shares of Wolfspeed in a report on Wednesday, June 24th. One investment analyst has rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Hold" and an average price target of $25.00.

Wolfspeed Stock Performance

WOLF opened at $23.48 on Friday. The firm's fifty day moving average is $43.62 and its two-hundred day moving average is $31.62. The firm has a market cap of $1.22 billion and a PE ratio of -2.22. Wolfspeed has a twelve month low of $8.05 and a twelve month high of $80.82.

Wolfspeed (NYSE:WOLF - Get Free Report) last announced its quarterly earnings results on Tuesday, May 5th. The company reported ($3.26) earnings per share (EPS) for the quarter, beating the consensus estimate of ($3.78) by $0.52. The firm had revenue of $150.20 million during the quarter, compared to analyst estimates of $150.00 million. During the same period last year, the firm earned ($0.72) EPS. Wolfspeed's quarterly revenue was down 19.0% on a year-over-year basis.

Institutional Investors Weigh In On Wolfspeed

Several large investors have recently made changes to their positions in WOLF. Summit Securities Group LLC increased its stake in Wolfspeed by 71.0% in the 4th 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. Capital Investment Advisory Services LLC lifted its position in shares of Wolfspeed by 13.3% during the 4th quarter. Capital Investment Advisory Services LLC now owns 15,174 shares of the company's stock worth $264,000 after buying an additional 1,783 shares in the last quarter. FNY Investment Advisers LLC purchased a new position in shares of Wolfspeed in the 2nd quarter worth approximately $204,000. Royal Bank of Canada purchased a new position in shares of Wolfspeed in the 1st quarter worth approximately $89,000. Finally, Atlas Brown Inc. boosted its stake in shares of Wolfspeed by 29.2% in the 2nd quarter. Atlas Brown Inc. now owns 32,300 shares of the company's stock worth $1,558,000 after buying an additional 7,300 shares during the last quarter.

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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