Wolfspeed (NYSE:WOLF) Trading Down 11.6% – Time to Sell?

Wolfspeed, Inc. (NYSE:WOLF) fell 11.6% during trading on Tuesday . The stock traded as low as $35.16 and last traded at $34.9040. 1,095,211 shares were traded during mid-day trading, a decline of 76% from the average session volume of 4,498,897 shares. The stock had previously closed at $39.47.

Key Stories Impacting Wolfspeed

Here are the key news stories impacting Wolfspeed this week:

• Positive Sentiment: Wolfspeed filed a patent infringement lawsuit against Navitas, alleging that a broad range of Navitas products infringe multiple Wolfspeed patents. This could strengthen Wolfspeed’s case for protecting its technology and may create a legal overhang for a rival. Wolfspeed Files Patent Infringement Lawsuit Against Navitas Semiconductor
• Neutral Sentiment: Some market commentary suggests Wolfspeed is still trading under pressure from broader semiconductor weakness and a lingering share-supply overhang tied to prior financing and registration activity, which can keep investor sentiment cautious. Wolfspeed Slides as Chip Stocks Weaken and Share-Supply Overhang Lingers
• Negative Sentiment: Wall Street is reportedly increasing short positions in Wolfspeed over concerns about cash burn, which points to continued skepticism about the company’s financial health and may be limiting upside in the stock. Wall Street doubles down on Wolfspeed short positions over cash burn fears

Analyst Ratings Changes

WOLF has been the topic of several recent research reports. Wall Street Zen raised shares of Wolfspeed from a “strong sell” rating to a “sell” rating in a research report on Saturday, May 9th. Weiss Ratings reissued a “sell (d-)” rating on shares of Wolfspeed in a research report on Wednesday, June 24th. One equities research analyst has rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, Wolfspeed has an average rating of “Hold” and an average price target of $20.00.

Wolfspeed Price Performance

The company has a market capitalization of $1.86 billion and a P/E ratio of -3.39. The stock’s fifty day simple moving average is $51.22 and its 200-day simple moving average is $30.46.

Wolfspeed (NYSE:WOLF) last released its earnings results on Tuesday, May 5th. The company reported ($3.26) EPS for the quarter, beating the consensus estimate of ($3.78) by $0.52. The company had revenue of $150.20 million for the quarter, compared to analyst estimates of $150.00 million. Wolfspeed’s revenue for the quarter was down 19.0% compared to the same quarter last year. During the same quarter in the previous year, the company earned ($0.72) earnings per share.

Hedge Funds Weigh In On Wolfspeed

Several large investors have recently added to or reduced their stakes in the company. Canada Pension Plan Investment Board bought a new stake in shares of Wolfspeed in the 2nd quarter worth approximately $34,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. acquired a new position in shares of Wolfspeed in the second quarter valued at $34,000. Summit Securities Group LLC raised its stake in shares of Wolfspeed by 71.0% in 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 in the last quarter. Marex Group plc bought a new position in Wolfspeed in the second quarter worth $44,000. Finally, Eastern Bank bought a new position in Wolfspeed in the fourth quarter worth $46,000.

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.