Wolfspeed (NYSE:WOLF) Trading Down 19.2% - Time to Sell?

Wolfspeed (NYSE:WOLF - Get Free Report) dropped 19.2% on Wednesday . The stock traded as low as $1.94 and last traded at $2.04. Approximately 60,410,498 shares changed hands during mid-day trading, an increase of 129% from the average daily volume of 26,370,696 shares. The stock had previously closed at $2.52.

Wall Street Analysts Forecast Growth

WOLF has been the subject of several analyst reports. Citigroup reissued 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. JPMorgan Chase & Co. reiterated an "underweight" rating on shares of Wolfspeed in a research report on Friday, May 9th. The Goldman Sachs Group decreased their target price on shares of Wolfspeed from $15.00 to $8.00 and set a "buy" rating for the company in a research report on Wednesday, April 2nd. Finally, Piper Sandler cut their price target on Wolfspeed from $10.00 to $6.00 and set an "overweight" rating on the stock in a report 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 MarketBeat.com, Wolfspeed currently has a consensus rating of "Hold" and an average target price of $11.15.

Wolfspeed Price Performance

The stock has a 50 day moving average of $1.92 and a two-hundred day moving average of $4.02. The company has a debt-to-equity ratio of 30.65, a quick ratio of 3.90 and a current ratio of 4.64. The firm has a market capitalization of $208.54 million, a P/E ratio of -0.16 and a beta of 1.09.

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

Insider Buying and Selling at Wolfspeed

In other Wolfspeed news, CFO Neill Reynolds sold 13,909 shares of the firm's stock in a transaction that occurred on Monday, April 28th. The stock was sold at an average price of $3.99, for a total value of $55,496.91. Following the sale, the chief financial officer owned 195,257 shares of the company's stock, valued at $779,075.43. This trade represents a 6.65% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Corporate insiders own 0.84% of the company's stock.

Institutional Investors Weigh In On Wolfspeed

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Vanguard Group Inc. increased its holdings in shares of Wolfspeed by 18.8% during the 1st quarter. Vanguard Group Inc. now owns 18,913,793 shares of the company's stock worth $57,876,000 after purchasing an additional 2,989,503 shares during the period. Shah Capital Management acquired a new stake in Wolfspeed during the first quarter worth about $6,586,000. Neuberger Berman Group LLC increased its stake in Wolfspeed by 72.7% during the first quarter. Neuberger Berman Group LLC now owns 4,329,584 shares of the company's stock valued at $13,723,000 after acquiring an additional 1,822,958 shares during the period. Jump Financial LLC acquired a new position in Wolfspeed in the 1st quarter valued at approximately $4,402,000. Finally, Frontier Capital Management Co. LLC raised its holdings in Wolfspeed by 94.2% in the 4th quarter. Frontier Capital Management Co. LLC now owns 2,050,778 shares of the company's stock valued at $13,658,000 after acquiring an additional 995,020 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.