Wolfspeed (NYSE:WOLF) Stock Price Down 19.2% - Here's Why

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

Wall Street Analysts Forecast Growth

Several research firms have commented on WOLF. Piper Sandler dropped their price target on shares of Wolfspeed from $10.00 to $6.00 and set an "overweight" rating for the company in a research note on Friday, May 9th. The Goldman Sachs Group cut their price target on Wolfspeed from $15.00 to $8.00 and set a "buy" rating on the stock in a report on Wednesday, April 2nd. Citigroup reaffirmed a "sell" rating and issued a $3.00 price target (down previously from $7.00) on shares of Wolfspeed in a research report on Friday, May 9th. Finally, JPMorgan Chase & Co. reissued an "underweight" rating on shares of Wolfspeed in a research report on Friday, May 9th. Five equities research analysts have rated the stock with a sell rating, five have issued a hold rating and four have assigned a buy rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus price target of $11.15.

Wolfspeed Price Performance

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 business's fifty day simple moving average is $1.92 and its 200 day simple moving average is $4.02. The stock has a market cap of $250.56 million, a price-to-earnings ratio of -0.19 and a beta of 1.09.

Wolfspeed (NYSE:WOLF - Get Free Report) last announced its quarterly earnings data on Thursday, May 8th. The company reported ($0.72) earnings per share (EPS) for the quarter, beating 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 analysts' expectations of $190.03 million. During the same quarter in the prior year, the firm posted ($0.62) earnings per share. Wolfspeed's revenue for the quarter was down 7.6% compared to the same quarter last year. Research analysts predict that Wolfspeed will post -4 EPS for the current fiscal year.

Insider Activity at Wolfspeed

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

Institutional Trading of Wolfspeed

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Sterling Capital Management LLC boosted its holdings in shares of Wolfspeed by 51.4% in the fourth quarter. Sterling Capital Management LLC now owns 7,463 shares of the company's stock worth $50,000 after buying an additional 2,533 shares during the period. Ground Swell Capital LLC lifted its stake in Wolfspeed by 25.6% in the fourth quarter. Ground Swell Capital LLC now owns 12,827 shares of the company's stock valued at $85,000 after acquiring an additional 2,611 shares during the last quarter. Steward Partners Investment Advisory LLC increased its position in Wolfspeed by 192.0% during the fourth quarter. Steward Partners Investment Advisory LLC now owns 4,429 shares of the company's stock worth $29,000 after buying an additional 2,912 shares during the last quarter. Victory Capital Management Inc. raised its stake in shares of Wolfspeed by 12.4% in the 1st quarter. Victory Capital Management Inc. now owns 26,562 shares of the company's stock valued at $81,000 after acquiring an additional 2,922 shares in the last quarter. Finally, Mutual of America Capital Management LLC boosted its holdings in shares of Wolfspeed by 17.1% during the 1st quarter. Mutual of America Capital Management LLC now owns 22,653 shares of the company's stock worth $69,000 after buying an additional 3,308 shares during the period.

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.