Wolfspeed (NYSE:WOLF) Shares Down 10.4% - Here's Why

Wolfspeed (NYSE:WOLF - Get Free Report)'s share price dropped 10.4% on Friday . The stock traded as low as $0.41 and last traded at $0.44. Approximately 26,281,940 shares were traded during trading, an increase of 37% from the average daily volume of 19,229,679 shares. The stock had previously closed at $0.49.

Analyst Ratings Changes

WOLF has been the subject of a number of analyst reports. Citigroup reissued a "sell" rating and issued a $3.00 price target (down from $7.00) on shares of Wolfspeed in a report on Friday, May 9th. JPMorgan Chase & Co. reissued an "underweight" rating on shares of Wolfspeed in a research note on Friday, May 9th. The Goldman Sachs Group decreased their price target on shares of Wolfspeed from $15.00 to $8.00 and set a "buy" rating on the stock in a research note on Wednesday, April 2nd. Finally, Piper Sandler cut their price objective on shares of Wolfspeed from $10.00 to $6.00 and set an "overweight" rating for the company in a research report on Friday, May 9th. Five equities research analysts have rated the stock with a sell rating, six have issued a hold rating and four have given a buy rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus target price of $11.15.

Wolfspeed Stock Performance

The company has a market cap of $63.96 million, a PE ratio of -0.05 and a beta of 1.29. The stock's 50 day simple moving average is $2.27 and its two-hundred day simple moving average is $4.47. The company has a quick ratio of 3.90, a current ratio of 4.64 and a debt-to-equity ratio of 30.65.

Wolfspeed (NYSE:WOLF - Get Free Report) last issued its earnings results on Thursday, May 8th. The company reported ($0.72) earnings per share for the quarter, topping the consensus estimate of ($0.82) by $0.10. Wolfspeed had a negative return on equity of 103.97% and a negative net margin of 146.43%. The business had revenue of $185.40 million for the quarter, compared to analyst estimates of $190.03 million. During the same period last year, the company posted ($0.62) EPS. The business's quarterly revenue was down 7.6% on a year-over-year basis. As a group, research analysts anticipate that Wolfspeed will post -4 earnings per share for the current year.

Insider Transactions at Wolfspeed

In other news, CFO Neill Reynolds sold 13,909 shares of the firm's stock in a transaction on Monday, April 28th. The shares were sold at an average price of $3.99, for a total value of $55,496.91. Following the transaction, the chief financial officer now owns 195,257 shares of the company's stock, valued at approximately $779,075.43. This trade represents a 6.65% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Company insiders own 0.84% of the company's stock.

Institutional Trading of Wolfspeed

Large investors have recently added to or reduced their stakes in the stock. Jones Financial Companies Lllp lifted its stake in shares of Wolfspeed by 1,240.6% during the fourth quarter. Jones Financial Companies Lllp now owns 3,834 shares of the company's stock worth $26,000 after purchasing an additional 3,548 shares in the last quarter. Steward Partners Investment Advisory LLC raised its holdings in shares of Wolfspeed by 192.0% during the 4th quarter. Steward Partners Investment Advisory LLC now owns 4,429 shares of the company's stock valued at $29,000 after buying an additional 2,912 shares during the period. Sterling Capital Management LLC lifted its position in Wolfspeed by 51.4% during the 4th quarter. Sterling Capital Management LLC now owns 7,463 shares of the company's stock worth $50,000 after acquiring an additional 2,533 shares in the last quarter. N.E.W. Advisory Services LLC purchased a new position in Wolfspeed in the 1st quarter worth approximately $28,000. Finally, GABELLI & Co INVESTMENT ADVISERS INC. purchased a new position in Wolfspeed in the 4th quarter worth approximately $67,000.

About Wolfspeed

Wolfspeed, Inc operates as a powerhouse semiconductor company focuses on silicon carbide and gallium nitride (GaN) technologies in Europe, Hong Kong, China, rest of Asia-Pacific, the United States, and internationally. It offers silicon carbide and GaN materials, including silicon carbide bare wafers, epitaxial wafers, and GaN epitaxial layers on silicon carbide wafers to manufacture products for RF, power, and other applications.

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