Wolfspeed (NYSE:WOLF) Shares Down 3% – Should You Sell?

Wolfspeed, Inc. (NYSE:WOLF) shares were down 3% during mid-day trading on Wednesday . The company traded as low as $1.37 and last traded at $1.44. Approximately 8,310,745 shares traded hands during mid-day trading, a decline of 71% from the average daily volume of 28,999,732 shares. The stock had previously closed at $1.48.

Wall Street Analyst Weigh In

Several equities research analysts recently issued reports on the stock. JPMorgan Chase & Co. restated an “underweight” rating on shares of Wolfspeed in a research report on Friday, May 9th. Piper Sandler reduced their price target on shares of Wolfspeed from $10.00 to $6.00 and set an “overweight” rating on the stock in a research report on Friday, May 9th. Bank of America decreased their price objective on Wolfspeed from $9.50 to $6.00 and set an “underperform” rating on the stock in a report on Thursday, January 30th. Citigroup reissued a “sell” rating and set a $3.00 target price (down previously from $7.00) on shares of Wolfspeed in a research note on Friday, May 9th. Finally, Canaccord Genuity Group decreased their price target on Wolfspeed from $18.00 to $10.00 and set a “buy” rating on the stock in a research note on Thursday, January 30th. Five 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. Based on data from MarketBeat, Wolfspeed has an average rating of “Hold” and a consensus target price of $11.15.

Wolfspeed Price Performance

The company has a market capitalization of $221.77 million, a PE ratio of -0.19 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. The stock’s 50 day simple moving average is $3.20 and its 200-day simple moving average is $5.58.

Wolfspeed (NYSE:WOLF) last announced its quarterly earnings data on Thursday, May 8th. The company reported ($0.72) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.82) by $0.10. The firm had revenue of $185.40 million during the quarter, compared to analysts’ expectations of $190.03 million. Wolfspeed had a negative net margin of 125.96% and a negative return on equity of 70.84%. The business’s quarterly revenue was down 7.6% compared to the same quarter last year. During the same quarter in the previous year, the business posted ($0.62) earnings per share. As a group, equities analysts forecast that Wolfspeed, Inc. will post -4 earnings per share for the current fiscal year.

Insider Activity at Wolfspeed

In other news, CFO Neill Reynolds sold 13,909 shares of the business’s stock in a transaction that occurred on Monday, April 28th. The shares were sold at an average price of $3.99, for a total transaction of $55,496.91. Following the completion of the sale, the chief financial officer now owns 195,257 shares in the company, valued at approximately $779,075.43. The trade was a 6.65% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. 0.84% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Wolfspeed

A number of institutional investors and hedge funds have recently bought and sold shares of WOLF. Vanguard Group Inc. grew its holdings in shares of Wolfspeed by 18.8% during the first quarter. Vanguard Group Inc. now owns 18,913,793 shares of the company’s stock worth $57,876,000 after buying an additional 2,989,503 shares during the last quarter. Shah Capital Management purchased a new stake in Wolfspeed during the 1st quarter valued at approximately $6,586,000. Neuberger Berman Group LLC lifted its position in Wolfspeed by 72.7% during the 1st quarter. Neuberger Berman Group LLC now owns 4,329,584 shares of the company’s stock worth $13,723,000 after acquiring an additional 1,822,958 shares during the period. Jump Financial LLC purchased a new position in shares of Wolfspeed in the 1st quarter valued at approximately $4,402,000. Finally, Frontier Capital Management Co. LLC increased its holdings in shares of Wolfspeed by 94.2% in the fourth quarter. Frontier Capital Management Co. LLC now owns 2,050,778 shares of the company’s stock valued at $13,658,000 after purchasing 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.