Wolfspeed (NYSE:WOLF) Trading Down 1.6% - Here's Why

Key Points

• Wolfspeed's stock price experienced a decline of 1.6%, trading between $1.46 and $1.50, with a notable drop in trading volume compared to average sessions.
• Analyst ratings for Wolfspeed show an increasing bearish sentiment, with Piper Sandler reducing the target price from $10 to $6, while Citigroup set a new target price of $3, reflecting a trend of five sell ratings in total.
• Wolfspeed reported a negative EPS of ($0.72) for the last quarter, although it surpassed expectations by $0.10, but revenues were down 7.6% compared to the same quarter last year.

Shares of Wolfspeed (NYSE:WOLF - Get Free Report) traded down 1.6% during trading on Monday . The company traded as low as $1.46 and last traded at $1.50. 2,651,989 shares were traded during mid-day trading, a decline of 94% from the average session volume of 41,225,898 shares. The stock had previously closed at $1.52.

Analyst Upgrades and Downgrades

Several brokerages recently weighed in on WOLF. Piper Sandler dropped their target price on Wolfspeed from $10.00 to $6.00 and set an "overweight" rating for the company in a report on Friday, May 9th. Citigroup reaffirmed a "sell" rating and set a $3.00 price target (down previously from $7.00) on shares of Wolfspeed in a report on Friday, May 9th. Finally, JPMorgan Chase & Co. reissued an "underweight" rating on shares of Wolfspeed in a research note on Friday, May 9th. Five analysts have rated the stock with a sell rating, five have assigned a hold rating and four have given a buy rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average price target of $11.15.

Wolfspeed Trading Up 3.2%

The stock's 50 day moving average price is $1.33 and its 200-day moving average price is $3.35. The stock has a market capitalization of $228.00 million, a P/E ratio of -0.18 and a beta of 1.23. The company has a quick ratio of 3.90, a current ratio of 4.64 and a debt-to-equity ratio of 30.65.

Wolfspeed (NYSE:WOLF - Get Free Report) last released its quarterly 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 business had revenue of $185.40 million during the quarter, compared to analyst estimates of $190.03 million. Wolfspeed had a negative net margin of 146.43% and a negative return on equity of 103.97%. The company's quarterly revenue was down 7.6% on a year-over-year basis. During the same period in the prior year, the firm posted ($0.62) earnings per share. As a group, equities research analysts expect that Wolfspeed will post -4 earnings per share for the current year.

Hedge Funds Weigh In On Wolfspeed

Hedge funds have recently made changes to their positions in the company. Sterling Capital Management LLC lifted its holdings in shares of Wolfspeed by 51.4% in the 4th quarter. Sterling Capital Management LLC now owns 7,463 shares of the company's stock valued at $50,000 after buying an additional 2,533 shares during the period. N.E.W. Advisory Services LLC acquired a new stake in Wolfspeed in the 1st quarter worth about $28,000. GABELLI & Co INVESTMENT ADVISERS INC. acquired a new position in Wolfspeed in the 4th quarter valued at $67,000. One68 Global Capital LLC acquired a new stake in shares of Wolfspeed in the fourth quarter valued at about $67,000. Finally, Beacon Capital Management LLC acquired a new position in shares of Wolfspeed during the 1st quarter worth approximately $31,000.

Wolfspeed Company Profile

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.