Wolfspeed (NYSE:WOLF) Stock Price Down 34% – Here’s What Happened

Wolfspeed (NYSE:WOLF)’s stock price was down 34% during mid-day trading on Monday . The company traded as low as $0.61 and last traded at $0.59. Approximately 28,171,362 shares traded hands during trading, an increase of 51% from the average daily volume of 18,693,138 shares. The stock had previously closed at $0.90.

Wall Street Analysts Forecast Growth

WOLF has been the subject of a number of research analyst reports. Piper Sandler lowered their target price on Wolfspeed from $10.00 to $6.00 and set an “overweight” rating for the company in a report on Friday, May 9th. The Goldman Sachs Group decreased their target price on Wolfspeed from $15.00 to $8.00 and set a “buy” rating for the company in a research note on Wednesday, April 2nd. JPMorgan Chase & Co. reaffirmed an “underweight” rating on shares of Wolfspeed in a research report on Friday, May 9th. Finally, Citigroup reissued a “sell” rating and issued a $3.00 target price (down previously from $7.00) on shares of Wolfspeed in a report on Friday, May 9th. Five research analysts have rated the stock with a sell rating, six have given a hold rating and four have assigned a buy rating to the company. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus target price of $11.15.

Wolfspeed Trading Down 33.9%

The stock has a market cap of $92.60 million, a price-to-earnings ratio of -0.07 and a beta of 1.30. The company has a quick ratio of 3.90, a current ratio of 4.64 and a debt-to-equity ratio of 30.65. The business has a 50-day moving average of $2.41 and a 200-day moving average of $4.65.

Wolfspeed (NYSE:WOLF) last announced its quarterly earnings results on Thursday, May 8th. The company reported ($0.72) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.82) by $0.10. The company had revenue of $185.40 million during the quarter, compared to analysts’ expectations of $190.03 million. Wolfspeed had a negative return on equity of 103.97% and a negative net margin of 146.43%. 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 firm earned ($0.62) earnings per share. As a group, research analysts forecast that Wolfspeed will post -4 earnings per share for the current year.

Insider Activity

In other Wolfspeed news, CFO Neill Reynolds sold 13,909 shares of the company’s stock in a transaction 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 legal filing with the SEC, which is accessible through this hyperlink. 0.84% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Wolfspeed

A number of large investors have recently added to or reduced their stakes in the company. Jones Financial Companies Lllp lifted 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 valued at $26,000 after purchasing an additional 3,548 shares during the last quarter. N.E.W. Advisory Services LLC acquired a new position in Wolfspeed in the first quarter valued at $28,000. Steward Partners Investment Advisory LLC increased its stake in Wolfspeed by 192.0% in the fourth quarter. Steward Partners Investment Advisory LLC now owns 4,429 shares of the company’s stock valued at $29,000 after purchasing an additional 2,912 shares in the last quarter. Beacon Capital Management LLC bought a new stake in Wolfspeed in the first quarter valued at $31,000. Finally, Wealthfront Advisers LLC bought a new stake in Wolfspeed in the first quarter valued at $32,000.

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.