Wolfspeed (NYSE:WOLF) Trading Down 8.3% - Here's What Happened

Key Points

• Wolfspeed shares fell 8.3% on Thursday, trading as low as $31.96 after closing at $35.10 the previous day, with volume well below average.
• Recent analyst commentary has been mixed, but the overall view remains Hold; MarketBeat reports a consensus price target of $20.00, below the current trading range.
• The company recently beat earnings expectations, posting a smaller-than-expected loss per share and slightly better-than-expected revenue, though revenue was still down 19% year over year.

Wolfspeed, Inc. (NYSE:WOLF - Get Free Report)'s stock price dropped 8.3% during mid-day trading on Thursday . The company traded as low as $31.96 and last traded at $32.17. Approximately 794,769 shares traded hands during mid-day trading, a decline of 82% from the average session volume of 4,439,021 shares. The stock had previously closed at $35.10.

Analyst Upgrades and Downgrades

A number of research firms have recently commented on WOLF. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Wolfspeed in a research report on Wednesday, June 24th. Wall Street Zen raised Wolfspeed from a "strong sell" rating to a "sell" rating in a research note on Saturday, May 9th. One analyst has rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, Wolfspeed has a consensus rating of "Hold" and an average price target of $20.00.

Wolfspeed Stock Down 11.6%

The company has a market capitalization of $1.61 billion and a P/E ratio of -2.92. The business has a fifty day moving average price of $51.52 and a 200 day moving average price of $31.05.

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

Institutional Trading of Wolfspeed

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Calamos Advisors LLC acquired a new stake in Wolfspeed in the 4th quarter valued at $12,451,000. Caitong International Asset Management Co. Ltd acquired a new position in shares of Wolfspeed during the 3rd quarter worth about $8,560,000. Prescott Group Capital Management L.L.C. bought a new position in shares of Wolfspeed in the 4th quarter valued at about $6,416,000. Ardsley Advisory Partners LP bought a new position in shares of Wolfspeed in the 4th quarter valued at about $2,873,000. Finally, Atlas Brown Inc. acquired a new stake in shares of Wolfspeed in the first quarter valued at about $408,000.

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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