Wolfspeed (NYSE:WOLF) Shares Down 7.9% - Here's What Happened

Wolfspeed (NYSE:WOLF - Get Free Report) shares dropped 7.9% during mid-day trading on Friday . The stock traded as low as $1.46 and last traded at $1.47. Approximately 32,708,183 shares were traded during trading, an increase of 21% from the average daily volume of 27,001,721 shares. The stock had previously closed at $1.59.

Analyst Upgrades and Downgrades

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

Wolfspeed Price Performance

The stock has a market cap of $223.32 million, a price-to-earnings ratio of -0.17 and a beta of 1.09. The company has a 50 day simple moving average of $1.85 and a 200-day simple moving average of $3.92. The company has a current ratio of 4.64, a quick ratio of 3.90 and a debt-to-equity ratio of 30.65.

Wolfspeed (NYSE:WOLF - Get Free Report) last announced its quarterly earnings data on Thursday, May 8th. The company reported ($0.72) earnings per share for the quarter, beating 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 company had revenue of $185.40 million during the quarter, compared to analysts' expectations of $190.03 million. During the same quarter last year, the company earned ($0.62) EPS. Wolfspeed'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 year.

Insider Buying and Selling at Wolfspeed

In related news, CFO Neill Reynolds sold 13,909 shares of the stock in a transaction that occurred on Monday, April 28th. The stock was sold at an average price of $3.99, for a total transaction of $55,496.91. Following the sale, the chief financial officer owned 195,257 shares of the company's stock, valued at $779,075.43. This represents a 6.65% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Insiders own 0.84% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the stock. Jones Financial Companies Lllp grew its stake in 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 buying an additional 3,548 shares in the last quarter. Steward Partners Investment Advisory LLC boosted its position 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 worth $29,000 after acquiring an additional 2,912 shares in the last quarter. Sterling Capital Management LLC increased its stake in Wolfspeed by 51.4% in the fourth quarter. Sterling Capital Management LLC now owns 7,463 shares of the company's stock valued at $50,000 after acquiring an additional 2,533 shares during the last quarter. N.E.W. Advisory Services LLC acquired a new position in Wolfspeed during the first quarter valued at approximately $28,000. Finally, GABELLI & Co INVESTMENT ADVISERS INC. bought a new stake in Wolfspeed during the fourth quarter worth $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.