Wolfspeed (NYSE:WOLF) Trading Down 1.6% - Should You Sell?

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.

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

Wall Street Analyst Weigh In

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

Wolfspeed Price Performance

The firm has a market capitalization of $235.77 million, a PE ratio of -0.18 and a beta of 1.21. The company has a debt-to-equity ratio of 30.65, a current ratio of 4.64 and a quick ratio of 3.90. The firm has a 50-day simple moving average of $1.33 and a 200-day simple moving average of $3.41.

Wolfspeed (NYSE:WOLF - Get Free Report) last posted its quarterly earnings data on Thursday, May 8th. The company reported ($0.72) EPS for the quarter, topping the consensus estimate of ($0.82) by $0.10. Wolfspeed had a negative return on equity of 103.97% and a negative net margin of 146.43%. The firm had revenue of $185.40 million for the quarter, compared to the consensus estimate of $190.03 million. During the same quarter last year, the company earned ($0.62) earnings per share. The business's revenue for the quarter was down 7.6% compared to the same quarter last year. As a group, equities analysts forecast that Wolfspeed will post -4 earnings per share for the current year.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in WOLF. Raymond James Financial Inc. acquired a new position in shares of Wolfspeed in the fourth quarter valued at about $109,000. Commonwealth Equity Services LLC boosted its stake in shares of Wolfspeed by 170.2% in the fourth quarter. Commonwealth Equity Services LLC now owns 36,757 shares of the company's stock worth $245,000 after buying an additional 23,154 shares during the last quarter. KLP Kapitalforvaltning AS purchased a new stake in shares of Wolfspeed in the fourth quarter worth about $153,000. Vanguard Group Inc. boosted its position in Wolfspeed by 1.9% during the fourth quarter. Vanguard Group Inc. now owns 15,924,290 shares of the company's stock worth $106,056,000 after purchasing an additional 299,304 shares in the last quarter. Finally, Dynamic Technology Lab Private Ltd purchased a new position in Wolfspeed during the fourth quarter worth approximately $443,000.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.