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

Wolfspeed, Inc. (NYSE:WOLF)’s share price gapped down before the market opened on Tuesday . The stock had previously closed at $27.40, but opened at $26.13. Wolfspeed shares last traded at $25.9210, with a volume of 321,878 shares.

Analyst Upgrades and Downgrades

Several analysts recently weighed in on the stock. Susquehanna cut their price objective on shares of Wolfspeed from $40.00 to $30.00 and set a “neutral” rating on the stock in a research report on Tuesday, July 21st. TD Cowen restated a “hold” rating and issued a $25.00 target price on shares of Wolfspeed in a research report on Thursday, August 20th. Wall Street Zen raised Wolfspeed from a “strong sell” rating to a “sell” rating in a report on Saturday, August 22nd. Finally, Weiss Ratings upgraded Wolfspeed from a “sell (d-)” rating to a “sell (d)” rating in a research report on Monday, August 24th. One analyst has rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of “Hold” and an average target price of $25.00.

Wolfspeed Stock Down 4.8%

The firm has a market capitalization of $1.38 billion and a P/E ratio of -1.65. The business’s 50 day moving average is $32.04 and its two-hundred day moving average is $33.27.

Wolfspeed (NYSE:WOLF) last released its earnings results on Wednesday, August 19th. The company reported ($2.26) EPS for the quarter, beating the consensus estimate of ($2.45) by $0.19. The company had revenue of $149.60 million for the quarter, compared to analyst estimates of $150.00 million. During the same period in the previous year, the business posted ($0.77) EPS. The firm’s quarterly revenue was down 24.1% on a year-over-year basis.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the stock. Renesas Electronics America Inc. acquired a new stake in Wolfspeed in the second quarter worth approximately $813,126,949. California State Teachers Retirement System acquired a new position in shares of Wolfspeed during the 2nd quarter valued at $72,081,000. UBS Group AG increased its position in shares of Wolfspeed by 3,413.9% during the 4th quarter. UBS Group AG now owns 1,269,548 shares of the company’s stock valued at $22,103,000 after purchasing an additional 1,233,419 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its stake in shares of Wolfspeed by 94.3% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 1,868,741 shares of the company’s stock worth $5,718,000 after buying an additional 906,968 shares in the last quarter. Finally, Goldman Sachs Group Inc. raised its stake in shares of Wolfspeed by 176.7% in the 1st quarter. Goldman Sachs Group Inc. now owns 1,380,499 shares of the company’s stock worth $4,224,000 after buying an additional 881,603 shares in the last quarter.

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.