Wolfspeed (NYSE:WOLF) Trading Down 1.7% - Time to 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) were down 1.7% during trading on Wednesday . The company traded as low as $1.47 and last traded at $1.48. Approximately 2,440,956 shares changed hands during trading, a decline of 94% from the average daily volume of 40,791,371 shares. The stock had previously closed at $1.50.

Wall Street Analyst Weigh In

A number of equities analysts have commented on WOLF shares. JPMorgan Chase & Co. reaffirmed an "underweight" rating on shares of Wolfspeed in a research report on Friday, May 9th. Piper Sandler reduced their price objective on shares of Wolfspeed from $10.00 to $6.00 and set an "overweight" rating for the company in a research report on Friday, May 9th. Finally, Citigroup reaffirmed a "sell" rating and set a $3.00 price objective (down from $7.00) on shares of Wolfspeed in a research report on Friday, May 9th. Five equities research analysts have rated the stock with a sell rating, four have assigned a hold rating and four have issued a buy rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Hold" and a consensus target price of $10.58.

Wolfspeed Stock Performance

The firm has a market cap of $231.11 million, a price-to-earnings ratio of -0.18 and a beta of 1.23. The stock has a 50 day moving average of $1.34 and a 200 day moving average of $3.27. 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 issued its earnings results on Thursday, May 8th. The company reported ($0.72) EPS for the quarter, topping the consensus estimate 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 business's quarterly revenue was down 7.6% on a year-over-year basis. During the same quarter in the previous year, the firm earned ($0.62) earnings per share. As a group, analysts anticipate that Wolfspeed will post -4 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the business. Sterling Capital Management LLC raised its stake in Wolfspeed by 51.4% during the fourth quarter. Sterling Capital Management LLC now owns 7,463 shares of the company's stock worth $50,000 after acquiring an additional 2,533 shares in the last quarter. Ground Swell Capital LLC raised its stake in Wolfspeed by 25.6% during the fourth quarter. Ground Swell Capital LLC now owns 12,827 shares of the company's stock worth $85,000 after acquiring an additional 2,611 shares in the last quarter. Victory Capital Management Inc. raised its stake in Wolfspeed by 12.4% during the first quarter. Victory Capital Management Inc. now owns 26,562 shares of the company's stock worth $81,000 after acquiring an additional 2,922 shares in the last quarter. Mutual of America Capital Management LLC raised its stake in Wolfspeed by 17.1% during the first quarter. Mutual of America Capital Management LLC now owns 22,653 shares of the company's stock worth $69,000 after acquiring an additional 3,308 shares in the last quarter. Finally, SBI Securities Co. Ltd. raised its stake in Wolfspeed by 39.7% during the first quarter. SBI Securities Co. Ltd. now owns 15,592 shares of the company's stock worth $48,000 after acquiring an additional 4,429 shares in the last quarter.

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.