Wolfspeed (NYSE:WOLF) Shares Gap Down – Here’s Why

Wolfspeed, Inc. (NYSE:WOLF)’s stock price gapped down prior to trading on Wednesday. The stock had previously closed at $28.57, but opened at $27.07. Wolfspeed shares last traded at $25.9150, with a volume of 472,296 shares.

Wall Street Analysts Forecast Growth

Several equities research analysts have weighed in on the stock. Zacks Research raised shares of Wolfspeed to a “hold” rating in a research note on Friday, September 25th. Wall Street Zen lowered shares of Wolfspeed from a “sell” rating to a “strong sell” rating in a report on Saturday, September 19th. Weiss Ratings raised shares of Wolfspeed from a “sell (d)” rating to a “sell (d+)” rating in a research report on Thursday, October 8th. TD Cowen restated a “hold” rating and issued a $25.00 target price on shares of Wolfspeed in a research note on Thursday, August 20th. Finally, Susquehanna reduced their target price on Wolfspeed from $40.00 to $30.00 and set a “neutral” rating for the company in a research note on Tuesday, July 21st. One investment analyst has rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average target price of $25.00.

Wolfspeed Stock Down 12.7%

The business has a 50-day moving average price of $28.22 and a two-hundred day moving average price of $35.36. The company has a market capitalization of $1.32 billion and a price-to-earnings ratio of -1.59.

Wolfspeed (NYSE:WOLF) last posted its quarterly earnings results on Wednesday, August 19th. The company reported ($2.26) earnings per share (EPS) for the quarter, beating the consensus estimate of ($2.45) by $0.19. The business had revenue of $149.60 million during 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 business’s revenue for the quarter was down 24.1% compared to the same quarter last year. On average, sell-side analysts anticipate that Wolfspeed, Inc. will post -8.27 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the business. WINTON GROUP Ltd bought a new stake in shares of Wolfspeed during the second quarter worth about $299,000. Engineers Gate Manager LP acquired a new stake in shares of Wolfspeed in the 2nd quarter worth about $347,000. Arizona State Retirement System acquired a new stake in shares of Wolfspeed in the 2nd quarter worth about $360,000. Readystate Asset Management LP acquired a new stake in shares of Wolfspeed in the 2nd quarter worth about $6,841,000. Finally, Concurrent Investment Advisors LLC bought a new position in Wolfspeed in the 2nd quarter valued at about $229,000.

About Wolfspeed

Wolfspeed, Inc (NYSE:WOLF) develops and manufactures semiconductor technologies based primarily on silicon carbide, a wide-bandgap material designed to support efficient power conversion and high-temperature operation. Its products are used in applications where reduced energy loss, higher power density and improved thermal performance are important.

The company’s offerings include silicon carbide wafers and materials, power modules, metal-oxide-semiconductor field-effect transistors (MOSFETs), diodes and other power semiconductor devices.