Wolfspeed (NYSE:WOLF) Trading Down 5.3% - Here's What Happened

Key Points

• Wolfspeed shares dropped 5.3%, trading as low as $1.66, with a significant decline in volume from the average.
• Analysts have downgraded Wolfspeed's price targets, with Piper Sandler reducing it from $10.00 to $6.00 and Citigroup lowering theirs from $7.00 to $3.00.
• Wolfspeed reported a loss of ($0.72) per share, beating estimates, but revenue of $185.4 million fell short of the $190.03 million forecast.
• Institutional investors have made significant changes to their holdings, with Vanguard increasing its position by 18.8% during the first quarter.

Shares of Wolfspeed (NYSE:WOLF - Get Free Report) dropped 5.3% on Friday . The company traded as low as $1.66 and last traded at $1.69. Approximately 8,374,999 shares changed hands during mid-day trading, a decline of 80% from the average daily volume of 42,504,203 shares. The stock had previously closed at $1.78.

Analyst Ratings Changes

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

Wolfspeed Stock Performance

The firm has a 50-day moving average price of $1.39 and a 200 day moving average price of $3.56. The firm has a market capitalization of $263.79 million, a PE ratio of -0.20 and a beta of 1.09. 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 released its earnings results on Thursday, May 8th. The company reported ($0.72) earnings per share (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 analyst estimates of $190.03 million. Wolfspeed had a negative return on equity of 103.97% and a negative net margin of 146.43%. Wolfspeed's revenue was down 7.6% compared to the same quarter last year. During the same period last year, the business posted ($0.62) earnings per share. Research analysts expect that Wolfspeed will post -4 earnings per share for the current year.

Institutional Trading of Wolfspeed

A number of institutional investors have recently bought and sold shares of the business. Sterling Capital Management LLC lifted its holdings in Wolfspeed by 51.4% during the 4th 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 last quarter. Ground Swell Capital LLC increased its position in Wolfspeed by 25.6% in the 4th 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 period. Victory Capital Management Inc. increased its position in 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 during the period. Mutual of America Capital Management LLC boosted its holdings in Wolfspeed by 17.1% in the 1st quarter. Mutual of America Capital Management LLC now owns 22,653 shares of the company's stock valued at $69,000 after purchasing an additional 3,308 shares in the last quarter. Finally, SBI Securities Co. Ltd. boosted its holdings in Wolfspeed by 39.7% in the 1st quarter. SBI Securities Co. Ltd. now owns 15,592 shares of the company's stock valued at $48,000 after purchasing 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.