Wolfspeed (NYSE:WOLF) Trading Down 7.6% - Should You Sell?

Key Points

• Wolfspeed shares fell 7.6% to about $30.39, with trading volume roughly 70% below the stock’s average session volume. The company has a market capitalization of approximately $1.57 billion and is unprofitable, with a P/E ratio of -2.86.
• Analyst sentiment is mixed but cautious: the consensus rating is “Hold”, with a $25 average price target. Susquehanna cut its target to $30 and maintained a neutral rating, while Wall Street Zen downgraded the stock to “strong sell.”
• Wolfspeed develops silicon carbide and gallium nitride semiconductors for electric vehicles, renewable energy, charging infrastructure, aerospace, defense and telecommunications. Several institutional investors recently initiated or increased small positions in the company.

Wolfspeed, Inc. (NYSE:WOLF - Get Free Report)'s share price dropped 7.6% during trading on Monday . The stock traded as low as $30.73 and last traded at $30.3880. 1,344,330 shares traded hands during mid-day trading, a decline of 70% from the average session volume of 4,458,134 shares. The stock had previously closed at $32.87.

Wall Street Analysts Forecast Growth

A number of brokerages have recently weighed in on WOLF. Susquehanna lowered their price target on Wolfspeed from $40.00 to $30.00 and set a "neutral" rating on the stock in a report on Tuesday, July 21st. Wall Street Zen lowered Wolfspeed from a "sell" rating to a "strong sell" rating in a research report on Saturday, August 1st. Finally, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Wolfspeed in a research note on Wednesday, June 24th. One analyst has rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus price target of $25.00.

Wolfspeed Stock Down 8.3%

The stock has a market cap of $1.57 billion and a P/E ratio of -2.86. The firm's 50-day moving average is $39.75 and its two-hundred day moving average is $31.97.

Institutional Investors Weigh In On Wolfspeed

A number of large investors have recently bought and sold shares of the business. Canada Pension Plan Investment Board acquired a new stake in shares of Wolfspeed in the second quarter worth about $34,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. bought a new stake in Wolfspeed during the second quarter worth approximately $34,000. Summit Securities Group LLC grew its holdings in Wolfspeed by 71.0% during the fourth quarter. Summit Securities Group LLC now owns 2,204 shares of the company's stock valued at $38,000 after purchasing an additional 915 shares during the last quarter. Marex Group plc bought a new position in shares of Wolfspeed in the second quarter valued at approximately $44,000. Finally, WINTON GROUP Ltd bought a new position in shares of Wolfspeed in the second quarter valued at approximately $47,000.

About Wolfspeed

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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