Wolfspeed (NYSE:WOLF) Stock Price Down 4.5% - Here's What Happened

Key Points

• Wolfspeed's shares experienced a significant decline of 4.5%, trading as low as $1.57, with an unusually low trading volume of 6,085,628 shares.
• Analyst Ratings are mixed, with five analysts rating the stock as a sell, and the price targets being lowered from previous highs, suggesting cautious sentiment around the company.
• The company reported a net loss of $0.72 EPS for the last quarter, beating estimates, but revenues fell short of expectations, indicating ongoing financial challenges.

Wolfspeed (NYSE:WOLF - Get Free Report) was down 4.5% during mid-day trading on Tuesday . The company traded as low as $1.57 and last traded at $1.61. Approximately 6,085,628 shares were traded during mid-day trading, a decline of 86% from the average daily volume of 42,131,348 shares. The stock had previously closed at $1.68.

Wall Street Analyst Weigh In

A number of analysts have recently issued reports on WOLF shares. JPMorgan Chase & Co. reiterated an "underweight" rating on shares of Wolfspeed in a report on Friday, May 9th. Piper Sandler lowered their price objective on shares of Wolfspeed from $10.00 to $6.00 and set an "overweight" rating on the stock in a report on Friday, May 9th. Finally, Citigroup reissued a "sell" rating and issued a $3.00 target price (down from $7.00) on shares of Wolfspeed in a research note on Friday, May 9th. Five equities research analysts have rated the stock with a sell rating, five have assigned a hold rating and four have assigned a buy rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus price target of $11.15.

Wolfspeed Stock Performance

The company has a debt-to-equity ratio of 30.65, a current ratio of 4.64 and a quick ratio of 3.90. The stock's 50-day simple moving average is $1.32 and its 200 day simple moving average is $3.48. The stock has a market capitalization of $234.22 million, a P/E ratio of -0.18 and a beta of 1.09.

Wolfspeed (NYSE:WOLF - Get Free Report) last released its quarterly earnings data on Thursday, May 8th. The company reported ($0.72) EPS for the quarter, topping analysts' consensus estimates of ($0.82) by $0.10. Wolfspeed had a negative net margin of 146.43% and a negative return on equity of 103.97%. The firm had revenue of $185.40 million during the quarter, compared to analysts' expectations of $190.03 million. During the same period in the previous year, the business posted ($0.62) earnings per share. The company's revenue for the quarter was down 7.6% compared to the same quarter last year. Research analysts expect that Wolfspeed will post -4 EPS for the current fiscal year.

Hedge Funds Weigh In On Wolfspeed

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. boosted its position in Wolfspeed by 1.9% during the fourth quarter. Vanguard Group Inc. now owns 15,924,290 shares of the company's stock worth $106,056,000 after purchasing an additional 299,304 shares during the period. Raiffeisen Bank International AG bought a new position in Wolfspeed during the fourth quarter worth $1,782,000. SG Americas Securities LLC boosted its position in Wolfspeed by 422.0% during the first quarter. SG Americas Securities LLC now owns 533,965 shares of the company's stock worth $1,634,000 after purchasing an additional 431,680 shares during the period. South Dakota Investment Council boosted its position in Wolfspeed by 121.8% during the first quarter. South Dakota Investment Council now owns 1,591,056 shares of the company's stock worth $4,869,000 after purchasing an additional 873,574 shares during the period. Finally, Stifel Financial Corp lifted its holdings in shares of Wolfspeed by 413.0% during the fourth quarter. Stifel Financial Corp now owns 137,690 shares of the company's stock worth $917,000 after buying an additional 110,848 shares in the last quarter.

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.