Wolfspeed (NYSE:WOLF) Trading Down 6.6% - Here's What Happened

Key Points

• Wolfspeed shares fell 6.6% on Thursday, trading as low as $27.34 and far below recent averages in heavy mid-day volume that was down 79% from normal.
• Analyst sentiment remains cautious: Susquehanna cut its price target to $30 with a neutral rating, while the broader consensus on WOLF is now Hold with an average price target of $25.
• The company recently reported a quarterly loss of $3.26 per share on revenue of $150.2 million, beating estimates but still showing a 19% year-over-year revenue decline.

Wolfspeed, Inc. (NYSE:WOLF - Get Free Report) traded down 6.6% on Thursday . The company traded as low as $27.34 and last traded at $27.3290. Approximately 930,883 shares traded hands during mid-day trading, a decline of 79% from the average session volume of 4,394,786 shares. The stock had previously closed at $29.27.

Wall Street Analysts Forecast Growth

WOLF has been the topic of a number of analyst reports. Susquehanna reduced their price target on Wolfspeed from $40.00 to $30.00 and set a "neutral" rating on the stock in a research report on Tuesday. Weiss Ratings reiterated a "sell (d-)" rating on shares of Wolfspeed in a research report on Wednesday, June 24th. Finally, Wall Street Zen raised Wolfspeed from a "strong sell" rating to a "sell" rating in a report on Saturday, July 18th. One equities research analyst has rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and a consensus price target of $25.00.

Wolfspeed Trading Down 10.2%

The company's 50-day moving average is $49.38 and its 200-day moving average is $31.50. The firm has a market cap of $1.37 billion and a price-to-earnings ratio of -2.49.

Wolfspeed (NYSE:WOLF - Get Free Report) last announced its quarterly earnings data on Tuesday, May 5th. The company reported ($3.26) EPS for the quarter, beating the consensus estimate of ($3.78) by $0.52. The firm had revenue of $150.20 million for the quarter, compared to analyst estimates of $150.00 million. The firm's revenue for the quarter was down 19.0% on a year-over-year basis. During the same quarter in the prior year, the firm earned ($0.72) earnings per share.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of WOLF. Canada Pension Plan Investment Board bought a new position in shares of Wolfspeed in the second quarter worth about $34,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. acquired a new position in Wolfspeed during the 2nd quarter worth approximately $34,000. Summit Securities Group LLC increased its position in Wolfspeed by 71.0% during the 4th quarter. Summit Securities Group LLC now owns 2,204 shares of the company's stock worth $38,000 after purchasing an additional 915 shares in the last quarter. Marex Group plc bought a new position in Wolfspeed in the 2nd quarter valued at approximately $44,000. Finally, Eastern Bank acquired a new stake in Wolfspeed in the fourth quarter valued at approximately $46,000.

Wolfspeed Company Profile

Wolfspeed, Inc NYSE: WOLF is a leading developer and manufacturer of silicon carbide (SiC) and gallium nitride (GaN) semiconductor materials and devices. The company's product portfolio addresses high-growth markets such as electric vehicles, renewable energy, fast-charging infrastructure, aerospace and defense, and telecommunications. By leveraging proprietary materials and device designs, Wolfspeed delivers solutions that offer improved energy efficiency, higher power density and greater thermal performance compared to conventional silicon-based semiconductors.

Founded as part of Cree, Inc and spun off to form an independent public company in October 2021, Wolfspeed traces its roots to the mid-1980s when it pioneered the commercial use of wide-bandgap semiconductor technology.

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