Wolfspeed (NYSE:WOLF) Trading Down 7.8% - Here's Why

Wolfspeed, Inc. (NYSE:WOLF - Get Free Report) shares traded down 7.8% during mid-day trading on Friday . The stock traded as low as $1.21 and last traded at $1.24. 9,172,322 shares changed hands during trading, a decline of 47% from the average session volume of 17,332,911 shares. The stock had previously closed at $1.34.

Wall Street Analyst Weigh In

Several equities analysts recently issued reports on the company. JPMorgan Chase & Co. restated an "underweight" rating on shares of Wolfspeed in a research note on Friday, May 9th. The Goldman Sachs Group cut their target price on Wolfspeed from $15.00 to $8.00 and set a "buy" rating on the stock in a research note on Wednesday, April 2nd. Piper Sandler cut their target price on Wolfspeed from $10.00 to $6.00 and set an "overweight" rating on the stock in a research note on Friday, May 9th. Finally, Citigroup reiterated a "sell" rating and issued a $3.00 target price (down from $7.00) on shares of Wolfspeed in a research note on Friday, May 9th. Five research analysts have rated the stock with a sell rating, six have assigned a hold rating and four have given a buy rating to the company. According to MarketBeat, Wolfspeed currently has a consensus rating of "Hold" and a consensus price target of $11.15.

Wolfspeed Trading Down 9.3%

The business has a fifty day moving average of $2.90 and a 200-day moving average of $5.45. The stock has a market capitalization of $189.09 million, a price-to-earnings ratio of -0.16 and a beta of 1.62. The company has a debt-to-equity ratio of 17.26, a current ratio of 3.15 and a quick ratio of 2.47.

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, topping analysts' consensus estimates of ($0.82) by $0.10. The firm had revenue of $185.40 million for the quarter, compared to analyst estimates of $190.03 million. Wolfspeed had a negative return on equity of 70.84% and a negative net margin of 125.96%. Wolfspeed's revenue was down 7.6% compared to the same quarter last year. During the same period in the previous year, the company earned ($0.62) earnings per share. On average, equities analysts anticipate that Wolfspeed, Inc. will post -4 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, CFO Neill Reynolds sold 13,909 shares of Wolfspeed stock in a transaction dated Monday, April 28th. The stock was sold at an average price of $3.99, for a total value of $55,496.91. Following the transaction, the chief financial officer now owns 195,257 shares of the company's stock, valued at approximately $779,075.43. This trade represents a 6.65% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 0.84% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Wolfspeed

Institutional investors have recently bought and sold shares of the stock. Jones Financial Companies Lllp increased its stake in Wolfspeed by 1,240.6% in the 4th quarter. Jones Financial Companies Lllp now owns 3,834 shares of the company's stock worth $26,000 after purchasing an additional 3,548 shares in the last quarter. R Squared Ltd purchased a new position in Wolfspeed in the 4th quarter worth about $28,000. Steward Partners Investment Advisory LLC increased its stake in Wolfspeed by 192.0% in the 4th quarter. Steward Partners Investment Advisory LLC now owns 4,429 shares of the company's stock worth $29,000 after purchasing an additional 2,912 shares in the last quarter. KBC Group NV increased its stake in Wolfspeed by 76.5% in the 4th quarter. KBC Group NV now owns 6,064 shares of the company's stock worth $40,000 after purchasing an additional 2,629 shares in the last quarter. Finally, Allworth Financial LP increased its stake in Wolfspeed by 38.1% in the 4th quarter. Allworth Financial LP now owns 7,060 shares of the company's stock worth $44,000 after purchasing an additional 1,949 shares in the last quarter.

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.