Wolfspeed (NYSE:WOLF) Shares Down 30.7% - Here's Why

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

Analyst Upgrades and Downgrades

A number of equities analysts have recently commented on WOLF shares. Citigroup restated a "sell" rating and issued a $3.00 price objective (down from $7.00) on shares of Wolfspeed in a research report on Friday, May 9th. JPMorgan Chase & Co. restated an "underweight" rating on shares of Wolfspeed in a research report on Friday, May 9th. Piper Sandler cut their price objective 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. Finally, The Goldman Sachs Group cut their price objective 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. Five investment analysts have rated the stock with a sell rating, six have given a hold rating and four have assigned a buy rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average target price of $11.15.

Wolfspeed Trading Up 2.4%

The firm has a market capitalization of $139.13 million, a P/E ratio of -0.11 and a beta of 1.29. The company has a quick ratio of 3.90, a current ratio of 4.64 and a debt-to-equity ratio of 30.65. The firm's 50-day simple moving average is $2.41 and its 200-day simple moving average is $4.68.

Wolfspeed (NYSE:WOLF - Get Free Report) last announced its earnings results 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 business had revenue of $185.40 million during the quarter, compared to analyst estimates of $190.03 million. During the same period in the previous year, the business posted ($0.62) earnings per share. Wolfspeed's revenue for the quarter was down 7.6% on a year-over-year basis. Analysts anticipate that Wolfspeed will post -4 EPS for the current year.

Insider Buying and Selling at Wolfspeed

In other news, CFO Neill Reynolds sold 13,909 shares of the company's stock in a transaction 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 approximately $779,075.43. This represents a 6.65% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. 0.84% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Wolfspeed

Institutional investors have recently made changes to their positions in the business. Jones Financial Companies Lllp boosted its stake in shares of Wolfspeed by 1,240.6% in the 4th quarter. Jones Financial Companies Lllp now owns 3,834 shares of the company's stock valued at $26,000 after purchasing an additional 3,548 shares in the last quarter. N.E.W. Advisory Services LLC bought a new stake in Wolfspeed during the 1st quarter valued at $28,000. Steward Partners Investment Advisory LLC raised its holdings in Wolfspeed by 192.0% during the 4th quarter. Steward Partners Investment Advisory LLC now owns 4,429 shares of the company's stock valued at $29,000 after buying an additional 2,912 shares during the last quarter. Beacon Capital Management LLC bought a new stake in Wolfspeed during the 1st quarter valued at $31,000. Finally, Wealthfront Advisers LLC bought a new stake in Wolfspeed during the 1st quarter valued at $32,000.

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.