Wolfspeed (NYSE:WOLF) Stock Price Down 34% - Here's What Happened

Wolfspeed (NYSE:WOLF - Get Free Report)'s share price traded down 34% on Monday . The company traded as low as $0.61 and last traded at $0.59. 28,171,362 shares changed hands during mid-day trading, an increase of 51% from the average session volume of 18,693,138 shares. The stock had previously closed at $0.90.

Wall Street Analyst Weigh In

A number of research analysts have weighed in on the stock. Citigroup reaffirmed a "sell" rating and issued a $3.00 price objective (down from $7.00) on shares of Wolfspeed in a research note on Friday, May 9th. JPMorgan Chase & Co. reissued an "underweight" rating on shares of Wolfspeed in a research report on Friday, May 9th. The Goldman Sachs Group dropped their price target on shares of Wolfspeed from $15.00 to $8.00 and set a "buy" rating on the stock in a research report on Wednesday, April 2nd. Finally, Piper Sandler dropped their price target on shares of Wolfspeed from $10.00 to $6.00 and set an "overweight" rating on the stock 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 given a buy rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average price target of $11.15.

Wolfspeed Stock Down 33.9%

The company's 50-day moving average price is $2.41 and its 200 day moving average price is $4.65. The stock has a market cap of $92.60 million, a PE ratio of -0.07 and a beta of 1.30. The company has a debt-to-equity ratio of 30.65, a quick ratio of 3.90 and a current ratio of 4.64.

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 analysts' consensus estimates 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 last year, the firm posted ($0.62) EPS. The company's revenue was down 7.6% on a year-over-year basis. As a group, analysts forecast that Wolfspeed will post -4 EPS for the current fiscal year.

Insider Activity

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

Hedge Funds Weigh In On Wolfspeed

Several institutional investors have recently made changes to their positions in the company. Jones Financial Companies Lllp grew its stake in Wolfspeed by 1,240.6% in the fourth 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 during the last quarter. Steward Partners Investment Advisory LLC lifted its holdings in Wolfspeed by 192.0% in the fourth quarter. Steward Partners Investment Advisory LLC now owns 4,429 shares of the company's stock valued at $29,000 after acquiring an additional 2,912 shares during the period. Allworth Financial LP raised its stake in shares of Wolfspeed by 38.1% during the 4th quarter. Allworth Financial LP now owns 7,060 shares of the company's stock worth $44,000 after buying an additional 1,949 shares during the period. Sterling Capital Management LLC raised its stake in shares of Wolfspeed by 51.4% during the 4th quarter. Sterling Capital Management LLC now owns 7,463 shares of the company's stock worth $50,000 after buying an additional 2,533 shares during the period. Finally, N.E.W. Advisory Services LLC acquired a new position in shares of Wolfspeed during the 1st quarter worth approximately $28,000.

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.

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