Wolfspeed (NYSE:WOLF) Shares Down 5.6% - Here's What Happened

Wolfspeed (NYSE:WOLF - Get Free Report)'s share price traded down 5.6% during mid-day trading on Wednesday . The stock traded as low as $0.58 and last traded at $0.59. 6,385,368 shares were traded during trading, a decline of 66% from the average session volume of 18,894,691 shares. The stock had previously closed at $0.63.

Wall Street Analysts Forecast Growth

Several equities analysts have recently issued reports on the company. JPMorgan Chase & Co. restated an "underweight" rating on shares of Wolfspeed in a research report on Friday, May 9th. The Goldman Sachs Group decreased their target price on 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 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 data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average target price of $11.15.

Wolfspeed Price Performance

The stock has a market cap of $62.25 million, a P/E ratio of -0.05 and a beta of 1.29. The company has a 50 day simple moving average of $2.23 and a 200 day simple moving average of $4.41. The company has a current ratio of 4.64, a quick ratio of 3.90 and a debt-to-equity ratio of 30.65.

Wolfspeed (NYSE:WOLF - Get Free Report) last released its earnings results on Thursday, May 8th. The company reported ($0.72) EPS for the quarter, beating the consensus estimate of ($0.82) by $0.10. The firm had revenue of $185.40 million for the quarter, compared to analysts' expectations of $190.03 million. Wolfspeed had a negative return on equity of 103.97% and a negative net margin of 146.43%. The business's quarterly revenue was down 7.6% compared to the same quarter last year. During the same quarter in the previous year, the business posted ($0.62) EPS. Sell-side analysts forecast that Wolfspeed will post -4 earnings per share for the current fiscal 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 that occurred on Monday, April 28th. The stock was sold at an average price of $3.99, for a total transaction 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 represents a 6.65% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. Company insiders own 0.84% of the company's stock.

Institutional Investors Weigh In On Wolfspeed

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Goldman Sachs Group Inc. raised its stake in shares of Wolfspeed by 176.7% during the 1st quarter. Goldman Sachs Group Inc. now owns 1,380,499 shares of the company's stock worth $4,224,000 after purchasing an additional 881,603 shares in the last quarter. Inspire Investing LLC raised its stake in shares of Wolfspeed by 85.3% during the 1st quarter. Inspire Investing LLC now owns 112,872 shares of the company's stock worth $345,000 after purchasing an additional 51,945 shares in the last quarter. Rhumbline Advisers raised its stake in Wolfspeed by 10.8% in the 1st quarter. Rhumbline Advisers now owns 342,505 shares of the company's stock valued at $1,048,000 after acquiring an additional 33,361 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its stake in Wolfspeed by 94.3% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 1,868,741 shares of the company's stock valued at $5,718,000 after acquiring an additional 906,968 shares during the period. Finally, MAI Capital Management raised its stake in Wolfspeed by 894.9% in the 1st quarter. MAI Capital Management now owns 10,815 shares of the company's stock valued at $33,000 after acquiring an additional 9,728 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.