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

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) traded down 5.3% on Friday . The stock traded as low as $1.66 and last traded at $1.69. 8,374,999 shares were traded during trading, a decline of 80% from the average session volume of 42,504,203 shares. The stock had previously closed at $1.78.

Wall Street Analyst Weigh In

A number of research analysts recently issued reports on the company. Piper Sandler dropped their price target on Wolfspeed from $10.00 to $6.00 and set an "overweight" rating on the stock in a research note on Friday, May 9th. The Goldman Sachs Group dropped their price target on Wolfspeed from $15.00 to $8.00 and set a "buy" rating for the company in a research report on Wednesday, April 2nd. Citigroup reissued a "sell" rating and set 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. restated an "underweight" rating on shares of Wolfspeed in a research note 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's stock. Based on data from MarketBeat, the company has an average rating of "Hold" and an average target price of $11.15.

Wolfspeed Price Performance

The company has a quick ratio of 3.90, a current ratio of 4.64 and a debt-to-equity ratio of 30.65. The firm has a market capitalization of $252.90 million, a PE ratio of -0.19 and a beta of 1.09. The firm's fifty day simple moving average is $1.48 and its 200-day simple moving average is $3.66.

Wolfspeed (NYSE:WOLF - Get Free Report) last issued its earnings results on Thursday, May 8th. The company reported ($0.72) earnings per share for the quarter, topping 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 net margin of 146.43% and a negative return on equity of 103.97%. Wolfspeed's revenue for the quarter was down 7.6% on a year-over-year basis. During the same quarter in the prior year, the business earned ($0.62) earnings per share. On average, research analysts forecast that Wolfspeed will post -4 earnings per share for the current fiscal year.

Insider Transactions at Wolfspeed

In other news, CFO Neill Reynolds sold 13,909 shares of the business's stock in a transaction dated Monday, April 28th. The shares were sold at an average price of $3.99, for a total transaction of $55,496.91. Following the transaction, the chief financial officer owned 195,257 shares of the company's stock, valued at approximately $779,075.43. The trade was a 6.65% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Corporate insiders own 0.84% of the company's stock.

Institutional Investors Weigh In On Wolfspeed

Several large investors have recently modified their holdings of WOLF. Vanguard Group Inc. increased its position in 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 in the last quarter. Primecap Management Co. CA lifted its position in shares of Wolfspeed by 2.2% in the 1st quarter. Primecap Management Co. CA now owns 6,665,270 shares of the company's stock worth $20,396,000 after buying an additional 146,106 shares during the last quarter. Neuberger Berman Group LLC boosted its holdings in shares of 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. Shah Capital Management acquired a new position in shares of Wolfspeed during the first quarter valued at $6,586,000. Finally, Frontier Capital Management Co. LLC boosted its position in Wolfspeed by 94.2% during the 4th quarter. Frontier Capital Management Co. LLC now owns 2,050,778 shares of the company's stock worth $13,658,000 after acquiring an additional 995,020 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.

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