Wolfspeed (NYSE:WOLF) Trading Down 11% – Here’s Why

Wolfspeed, Inc. (NYSE:WOLF) traded down 11% on Friday . The stock traded as low as $16.78 and last traded at $16.85. 764,836 shares were traded during mid-day trading, a decline of 55% from the average session volume of 1,681,566 shares. The stock had previously closed at $18.94.

Wall Street Analysts Forecast Growth

Several analysts have weighed in on WOLF shares. Weiss Ratings reissued a “sell (d-)” rating on shares of Wolfspeed in a report on Monday, December 29th. Wall Street Zen downgraded shares of Wolfspeed from a “hold” rating to a “sell” rating in a report on Saturday, February 7th. Piper Sandler reiterated an “overweight” rating and issued a $20.00 price target (up from $6.00) on shares of Wolfspeed in a research report on Thursday, February 5th. Zacks Research upgraded Wolfspeed to a “hold” rating in a research report on Monday, February 9th. Finally, Susquehanna lowered their target price on Wolfspeed from $30.00 to $20.00 and set a “neutral” rating on the stock in a report on Thursday, January 22nd. Two investment analysts have rated the stock with a Buy rating, two have given a Hold rating and three have issued a Sell rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Reduce” and a consensus target price of $12.75.

Wolfspeed Trading Down 11.7%

The company’s 50 day simple moving average is $18.44 and its 200 day simple moving average is $17.08. The stock has a market capitalization of $753.89 million and a PE ratio of -2.38.

Wolfspeed (NYSE:WOLF) last issued its quarterly earnings results on Wednesday, February 4th. The company reported ($6.11) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.74) by ($5.37). The business had revenue of $168.50 million during the quarter, compared to the consensus estimate of $170.00 million. The firm’s revenue for the quarter was down 6.6% on a year-over-year basis. During the same quarter in the previous year, the company posted ($0.95) earnings per share. As a group, analysts predict that Wolfspeed, Inc. will post -4 EPS for the current year.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the stock. Canada Pension Plan Investment Board purchased a new stake in Wolfspeed in the second quarter valued at approximately $34,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. acquired a new stake in shares of Wolfspeed during the 2nd quarter worth $34,000. Summit Securities Group LLC raised its position in shares of Wolfspeed by 71.0% in the 4th quarter. Summit Securities Group LLC now owns 2,204 shares of the company’s stock worth $38,000 after buying an additional 915 shares during the period. Marex Group plc acquired a new position in Wolfspeed in the second quarter valued at $44,000. Finally, Panagora Asset Management Inc. grew its position in Wolfspeed by 709.4% during the second quarter. Panagora Asset Management Inc. now owns 113,800 shares of the company’s stock valued at $45,000 after acquiring an additional 99,740 shares during the period.

Wolfspeed Company Profile

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.