Wolfspeed (NYSE:WOLF) Trading Down 1.7% - Should You Sell?

Key Points

• Wolfspeed shares experienced a decrease of 1.7%, trading at $1.48 with a significant decline in volume compared to the average, indicating a lack of investor confidence.
• Analysts have given Wolfspeed a mixed rating, with five sell ratings, five holds, and four buys, while Citigroup has lowered its price target from $7.00 to $3.00.
• Wolfspeed reported a quarterly revenue decline of 7.6% year-over-year and a negative EPS of ($0.72), which was still an improvement over analysts' expectations.

Shares of Wolfspeed (NYSE:WOLF - Get Free Report) traded down 1.7% during trading on Wednesday . The company traded as low as $1.47 and last traded at $1.48. 2,440,956 shares traded hands during mid-day trading, a decline of 94% from the average session volume of 40,791,371 shares. The stock had previously closed at $1.50.

Analyst Upgrades and Downgrades

A number of equities analysts have issued reports on the company. JPMorgan Chase & Co. reiterated an "underweight" rating on shares of Wolfspeed in a report on Friday, May 9th. Citigroup reiterated a "sell" rating and issued a $3.00 price objective (down from $7.00) on shares of Wolfspeed in a report on Friday, May 9th. Finally, Piper Sandler cut their price target on Wolfspeed from $10.00 to $6.00 and set an "overweight" rating for the company in a research note on Friday, May 9th. Five equities research analysts have rated the stock with a sell rating, five have assigned a hold rating and four have issued a buy rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Hold" and an average price target of $11.15.

Wolfspeed Stock Down 7.0%

The company has a current ratio of 4.64, a quick ratio of 3.90 and a debt-to-equity ratio of 30.65. The firm has a market capitalization of $217.10 million, a P/E ratio of -0.17 and a beta of 1.23. The company has a 50 day simple moving average of $1.33 and a two-hundred day simple moving average of $3.37.

Wolfspeed (NYSE:WOLF - Get Free Report) last posted its earnings results on Thursday, May 8th. The company reported ($0.72) EPS for the quarter, beating analysts' consensus estimates of ($0.82) by $0.10. The firm had revenue of $185.40 million during the quarter, compared to the consensus estimate of $190.03 million. Wolfspeed had a negative return on equity of 103.97% and a negative net margin of 146.43%. The company's quarterly revenue was down 7.6% compared to the same quarter last year. During the same period in the prior year, the company earned ($0.62) EPS. On average, equities analysts predict that Wolfspeed will post -4 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of WOLF. Ground Swell Capital LLC bought a new stake in shares of Wolfspeed during the second quarter worth $74,000. DekaBank Deutsche Girozentrale purchased a new position in Wolfspeed in the second quarter valued at about $28,000. Praxis Investment Management Inc. purchased a new position in Wolfspeed in the second quarter valued at about $41,000. Vontobel Holding Ltd. grew its stake in shares of Wolfspeed by 73.6% during the second quarter. Vontobel Holding Ltd. now owns 479,563 shares of the company's stock worth $191,000 after acquiring an additional 203,341 shares during the last quarter. Finally, State of Alaska Department of Revenue grew its stake in shares of Wolfspeed by 15.4% during the second quarter. State of Alaska Department of Revenue now owns 99,465 shares of the company's stock worth $38,000 after acquiring an additional 13,265 shares during the last quarter.

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.

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