Wolfspeed (NYSE:WOLF) Stock Price Down 6.4% - Here's Why

Key Points

• Wolfspeed shares fell 6.4% on Monday to about $29.24, with roughly 2.16 million shares traded (about 4% above average).
• Analyst sentiment is weak — MarketBeat shows a consensus rating of "Reduce" and a consensus price target of $14.33 after several downgrades and mixed notes.
• The company reported a large quarterly miss (EPS of ($6.11) versus a consensus of ($0.74)) and revenue fell 6.6% year-over-year, leaving a market cap near $1.33 billion and a negative P/E.

Wolfspeed, Inc. (NYSE:WOLF - Get Free Report) shares were down 6.4% on Monday . The company traded as low as $29.12 and last traded at $29.2430. Approximately 2,164,177 shares traded hands during trading, an increase of 4% from the average daily volume of 2,082,597 shares. The stock had previously closed at $31.23.

Analyst Ratings Changes

Several research analysts have recently commented on WOLF shares. Weiss Ratings reissued a "sell (d-)" rating on shares of Wolfspeed in a research note on Friday, March 27th. Susquehanna lowered their price objective on shares of Wolfspeed from $30.00 to $20.00 and set a "neutral" rating for the company in a research note on Thursday, January 22nd. Zacks Research raised shares of Wolfspeed to a "hold" rating in a research note on Monday, February 9th. Wall Street Zen lowered shares of Wolfspeed from a "hold" rating to a "sell" rating in a research note on Saturday, February 7th. Finally, Piper Sandler reissued an "overweight" rating and issued a $20.00 price objective (up from $6.00) on shares of Wolfspeed in a research note on Thursday, February 5th. One investment analyst has rated the stock with a Buy rating, two have given a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat, Wolfspeed presently has a consensus rating of "Reduce" and a consensus price target of $14.33.

Wolfspeed Stock Performance

The company has a 50-day simple moving average of $19.92 and a two-hundred day simple moving average of $20.58. The firm has a market capitalization of $1.33 billion and a P/E ratio of -4.20.

Wolfspeed (NYSE:WOLF - Get Free Report) last posted its quarterly earnings data on Wednesday, January 28th. The company reported ($6.11) earnings per share for the quarter, missing the consensus estimate of ($0.74) by ($5.37). Wolfspeed's revenue was down 6.6% on a year-over-year basis. During the same quarter last year, the company earned ($0.95) earnings per share.

Hedge Funds Weigh In On Wolfspeed

Several large investors have recently made changes to their positions in the business. Shah Capital Management lifted its holdings in shares of Wolfspeed by 1,419.5% during the first quarter. Shah Capital Management now owns 508,948 shares of the company's stock valued at $8,306,000 after purchasing an additional 475,454 shares during the last quarter. Atlas Brown Inc. purchased a new position in shares of Wolfspeed during the first quarter valued at approximately $408,000. SG Americas Securities LLC purchased a new position in shares of Wolfspeed during the first quarter valued at approximately $6,671,000. Yaupon Capital Management LP purchased a new position in shares of Wolfspeed during the fourth quarter valued at approximately $7,834,000. Finally, Summit Securities Group LLC lifted its holdings in shares of Wolfspeed by 71.0% during the fourth quarter. Summit Securities Group LLC now owns 2,204 shares of the company's stock valued at $38,000 after purchasing an additional 915 shares during the last quarter.

Wolfspeed Company Profile

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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