Wolfspeed (NYSE:WOLF) Stock Price Down 9% - Time to Sell?

Key Points

• Wolfspeed shares fell roughly 9% to about $28.63, significantly below their 50-day moving average of $36.12, while trading volume was 79% below average.
• Analyst sentiment remains cautious: the consensus rating is “Hold” with a $25 target price, while Wall Street Zen downgraded the stock to “strong sell” and Susquehanna cut its target to $30.
• Despite the decline, several institutional investors increased their positions, including Goldman Sachs, UBS Asset Management and Ilex Capital Partners. Wolfspeed develops silicon-carbide and gallium-nitride semiconductors for electric vehicles, renewable energy, aerospace and other markets.

Wolfspeed, Inc. (NYSE:WOLF - Get Free Report)'s share price was down 9% during mid-day trading on Wednesday . The company traded as low as $28.89 and last traded at $28.6250. Approximately 906,640 shares traded hands during mid-day trading, a decline of 79% from the average session volume of 4,422,336 shares. The stock had previously closed at $31.46.

Analyst Upgrades and Downgrades

WOLF has been the topic of several recent analyst reports. Wall Street Zen lowered shares of Wolfspeed from a "sell" rating to a "strong sell" rating in a report on Saturday, August 1st. Weiss Ratings reiterated a "sell (d-)" rating on shares of Wolfspeed in a report on Wednesday, June 24th. Finally, Susquehanna cut their target price on Wolfspeed from $40.00 to $30.00 and set a "neutral" rating on the stock in a research report on Tuesday, July 21st. One research analyst has rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Hold" and a consensus target price of $25.00.

Wolfspeed Trading Down 9.8%

The business has a fifty day moving average of $36.12 and a 200 day moving average of $32.61. The company has a market capitalization of $1.47 billion and a PE ratio of -2.68.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Goldman Sachs Group Inc. raised its holdings in Wolfspeed by 176.7% during the first 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. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its holdings in shares of Wolfspeed by 94.3% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 1,868,741 shares of the company's stock worth $5,718,000 after purchasing an additional 906,968 shares during the last quarter. WINTON GROUP Ltd acquired a new stake in shares of Wolfspeed during the second quarter worth about $47,000. Ilex Capital Partners UK LLP lifted its holdings in shares of Wolfspeed by 499.1% in the 2nd quarter. Ilex Capital Partners UK LLP now owns 665,697 shares of the company's stock valued at $265,000 after purchasing an additional 554,587 shares during the last quarter. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. purchased a new stake in shares of Wolfspeed in the 2nd quarter valued at about $34,000.

About Wolfspeed

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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