Wolfspeed (NYSE:WOLF) Shares Gap Down - What's Next?

Key Points

• Wolfspeed shares opened lower on Friday, gapping down from a prior close of $37.25 to an open of $35.98 and last trading around $35.94, with the stock down about 7.3% on the session.
• Analyst sentiment remains cautious: the stock carries a consensus Hold rating and a $20.00 price target, while recent notes included a downgrade from strong sell to sell and a reiterated sell rating.
• The company recently reported mixed quarterly results, beating EPS and revenue estimates slightly, but revenue still fell 19% year over year; Wolfspeed continues to operate in silicon carbide and gallium nitride semiconductors for EVs, defense, and other growth markets.

Wolfspeed, Inc. (NYSE:WOLF - Get Free Report)'s stock price gapped down prior to trading on Friday . The stock had previously closed at $37.25, but opened at $35.98. Wolfspeed shares last traded at $35.9350, with a volume of 247,427 shares changing hands.

Analyst Upgrades and Downgrades

A number of brokerages recently weighed in on WOLF. Wall Street Zen upgraded Wolfspeed from a "strong sell" rating to a "sell" rating in a research note on Saturday, May 9th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Wolfspeed in a research note on Wednesday, June 24th. One equities research analyst has rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus price target of $20.00.

Wolfspeed Stock Down 7.3%

The firm has a market cap of $1.80 billion and a PE ratio of -3.27. The stock has a 50 day moving average price of $51.45 and a two-hundred day moving average price of $30.59.

Wolfspeed (NYSE:WOLF - Get Free Report) last announced its quarterly earnings data on Tuesday, May 5th. The company reported ($3.26) EPS for the quarter, beating the consensus estimate of ($3.78) by $0.52. The company had revenue of $150.20 million during the quarter, compared to analysts' expectations of $150.00 million. The business's revenue for the quarter was down 19.0% compared to the same quarter last year. During the same period in the previous year, the business earned ($0.72) earnings per share.

Institutional Investors Weigh In On Wolfspeed

A number of large investors have recently made changes to their positions in the stock. Canada Pension Plan Investment Board purchased a new position in Wolfspeed in the 2nd quarter worth $34,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. acquired a new position in shares of Wolfspeed in the second quarter valued at about $34,000. Summit Securities Group LLC raised its stake in shares of Wolfspeed by 71.0% in the fourth quarter. Summit Securities Group LLC now owns 2,204 shares of the company's stock worth $38,000 after purchasing an additional 915 shares during the last quarter. Marex Group plc purchased a new position in shares of Wolfspeed in the second quarter worth about $44,000. Finally, Eastern Bank acquired a new stake in shares of Wolfspeed during the fourth quarter worth about $46,000.

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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