Wolfspeed (NYSE:WOLF) Trading Down 7% - Should You Sell?

Wolfspeed, Inc. (NYSE:WOLF - Get Free Report)'s share price fell 7% during trading on Tuesday . The stock traded as low as $5.14 and last traded at $5.02. 2,614,016 shares traded hands during mid-day trading, a decline of 74% from the average session volume of 10,191,298 shares. The stock had previously closed at $5.39.

Analyst Upgrades and Downgrades

Several research firms have commented on WOLF. StockNews.com raised Wolfspeed to a "sell" rating in a report on Monday, January 6th. Canaccord Genuity Group lowered their price target on Wolfspeed from $18.00 to $10.00 and set a "buy" rating on the stock in a report on Thursday, January 30th. Bank of America lowered their price target on Wolfspeed from $9.50 to $6.00 and set an "underperform" rating on the stock in a report on Thursday, January 30th. Piper Sandler reduced their price objective on Wolfspeed from $18.00 to $10.00 and set an "overweight" rating for the company in a research report on Thursday, January 30th. Finally, Mizuho reduced their price objective on Wolfspeed from $10.00 to $6.00 and set an "underperform" rating for the company in a research report on Tuesday, November 19th. Three research analysts have rated the stock with a sell rating, ten have issued a hold rating and four have assigned a buy rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Hold" and an average target price of $14.86.

Wolfspeed Stock Performance

The business has a 50 day moving average of $5.95 and a 200 day moving average of $8.45. The company has a market capitalization of $754.15 million, a P/E ratio of -0.77 and a beta of 1.50. The company has a quick ratio of 2.47, a current ratio of 3.15 and a debt-to-equity ratio of 17.26.

Wolfspeed (NYSE:WOLF - Get Free Report) last posted its quarterly earnings data on Wednesday, January 29th. The company reported ($1.10) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.90) by ($0.20). Wolfspeed had a negative net margin of 125.96% and a negative return on equity of 70.84%. On average, sell-side analysts predict that Wolfspeed, Inc. will post -4 earnings per share for the current year.

Institutional Investors Weigh In On Wolfspeed

Several institutional investors have recently modified their holdings of the stock. South Dakota Investment Council lifted its stake in shares of Wolfspeed by 26.4% during the 4th quarter. South Dakota Investment Council now owns 717,482 shares of the company's stock worth $4,778,000 after acquiring an additional 149,648 shares during the last quarter. Public Sector Pension Investment Board bought a new stake in shares of Wolfspeed during the 3rd quarter worth approximately $2,590,000. Primecap Management Co. CA lifted its stake in shares of Wolfspeed by 5.0% during the 3rd quarter. Primecap Management Co. CA now owns 6,349,180 shares of the company's stock worth $61,587,000 after acquiring an additional 303,870 shares during the last quarter. Principal Financial Group Inc. lifted its stake in shares of Wolfspeed by 41.4% during the 3rd quarter. Principal Financial Group Inc. now owns 592,599 shares of the company's stock worth $5,748,000 after acquiring an additional 173,409 shares during the last quarter. Finally, Thrivent Financial for Lutherans increased its holdings in Wolfspeed by 225.0% during the 3rd quarter. Thrivent Financial for Lutherans now owns 98,832 shares of the company's stock worth $959,000 after purchasing an additional 68,423 shares during the period.

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.