Wolfspeed (NYSE:WOLF) Stock Price Down 30.7% - Time to Sell?

Wolfspeed (NYSE:WOLF - Get Free Report) shares dropped 30.7% on Thursday . The company traded as low as $0.83 and last traded at $0.87. Approximately 80,313,052 shares traded hands during trading, an increase of 336% from the average daily volume of 18,413,742 shares. The stock had previously closed at $1.25.

Wall Street Analysts Forecast Growth

WOLF has been the topic of a number of research analyst reports. JPMorgan Chase & Co. reissued an "underweight" rating on shares of Wolfspeed in a report on Friday, May 9th. The Goldman Sachs Group decreased their target price on shares of Wolfspeed from $15.00 to $8.00 and set a "buy" rating for the company in a research report on Wednesday, April 2nd. Citigroup restated a "sell" rating and set a $3.00 target price (down from $7.00) on shares of Wolfspeed in a research report on Friday, May 9th. Finally, Piper Sandler decreased their target price on shares of Wolfspeed from $10.00 to $6.00 and set an "overweight" rating for the company in a research report on Friday, May 9th. Five analysts have rated the stock with a sell rating, six have assigned a hold rating and four have assigned a buy rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus price target of $11.15.

Wolfspeed Stock Performance

The company has a market cap of $134.78 million, a PE ratio of -0.10 and a beta of 1.29. The company has a debt-to-equity ratio of 30.65, a quick ratio of 3.90 and a current ratio of 4.64. The firm's 50 day moving average is $2.43 and its 200-day moving average is $4.78.

Wolfspeed (NYSE:WOLF - Get Free Report) last announced its quarterly earnings data on Thursday, May 8th. The company reported ($0.72) earnings per share (EPS) for the quarter, beating the consensus estimate 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 company had revenue of $185.40 million during the quarter, compared to analysts' expectations of $190.03 million. During the same quarter in the prior year, the company earned ($0.62) EPS. Wolfspeed's revenue was down 7.6% compared to the same quarter last year. On average, research analysts anticipate that Wolfspeed will post -4 earnings per share for the current fiscal year.

Insider Activity at Wolfspeed

In other news, CFO Neill Reynolds sold 13,909 shares of the stock in a transaction that occurred on Monday, April 28th. The shares were sold at an average price of $3.99, for a total value of $55,496.91. Following the completion of the sale, the chief financial officer now owns 195,257 shares of the company's stock, valued at $779,075.43. This represents a 6.65% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. 0.84% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the business. Vanguard Group Inc. lifted its stake in shares of Wolfspeed by 18.8% in the 1st quarter. Vanguard Group Inc. now owns 18,913,793 shares of the company's stock valued at $57,876,000 after purchasing an additional 2,989,503 shares during the last quarter. Primecap Management Co. CA raised its holdings in Wolfspeed by 2.2% in the 1st quarter. Primecap Management Co. CA now owns 6,665,270 shares of the company's stock valued at $20,396,000 after buying an additional 146,106 shares during the period. Neuberger Berman Group LLC lifted its position in Wolfspeed by 72.7% in the first quarter. Neuberger Berman Group LLC now owns 4,329,584 shares of the company's stock valued at $13,723,000 after buying an additional 1,822,958 shares during the last quarter. Shah Capital Management purchased a new position in Wolfspeed during the first quarter worth about $6,586,000. Finally, Frontier Capital Management Co. LLC boosted its stake in Wolfspeed by 94.2% during the fourth quarter. Frontier Capital Management Co. LLC now owns 2,050,778 shares of the company's stock worth $13,658,000 after buying an additional 995,020 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.