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

Key Points

• Wolfspeed shares fell sharply, closing at $34.96 before opening at $32.10 and last trading near $32.69 on volume of about 1.1 million shares.
• Analyst sentiment remains cautious: Susquehanna lowered its price target to $30, Wall Street Zen issued a “strong sell” rating, and the consensus rating is “Hold” with a $25 target.
• Wolfspeed has a market capitalization of approximately $1.66 billion; several institutional investors recently increased holdings or initiated new positions in the semiconductor company.

Wolfspeed, Inc. (NYSE:WOLF - Get Free Report)'s share price gapped down prior to trading on Tuesday . The stock had previously closed at $34.96, but opened at $32.10. Wolfspeed shares last traded at $32.6850, with a volume of 1,096,497 shares changing hands.

Analyst Upgrades and Downgrades

Several equities research analysts recently commented on WOLF shares. Weiss Ratings reiterated a "sell (d-)" rating on shares of Wolfspeed in a research note on Wednesday, June 24th. Susquehanna cut their target price on Wolfspeed from $40.00 to $30.00 and set a "neutral" rating on the stock in a research report on Tuesday, July 21st. Finally, Wall Street Zen downgraded Wolfspeed from a "sell" rating to a "strong sell" rating in a report on Saturday, August 1st. One investment analyst has rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Hold" and a consensus price target of $25.00.

Wolfspeed Price Performance

The company has a market capitalization of $1.66 billion and a price-to-earnings ratio of -3.04. The business's 50 day simple moving average is $36.47 and its 200 day simple moving average is $32.52.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of WOLF. Summit Securities Group LLC boosted its holdings 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 purchasing an additional 915 shares in the last quarter. FNY Investment Advisers LLC purchased a new position in shares of Wolfspeed during the 2nd quarter worth approximately $204,000. Royal Bank of Canada acquired a new stake in shares of Wolfspeed in the 1st quarter valued at approximately $89,000. Atlas Brown Inc. lifted its holdings in shares of Wolfspeed by 29.2% in the 2nd quarter. Atlas Brown Inc. now owns 32,300 shares of the company's stock valued at $1,558,000 after buying an additional 7,300 shares during the period. Finally, Next Level Private LLC purchased a new stake in shares of Wolfspeed in the second quarter valued at approximately $434,000.

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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