Wolfspeed (NYSE:WOLF) Trading Down 7.6% – Here’s Why

Wolfspeed, Inc. (NYSE:WOLF)’s share price dropped 7.6% during trading on Friday . The company traded as low as $15.72 and last traded at $15.5360. Approximately 378,129 shares traded hands during trading, a decline of 77% from the average daily volume of 1,650,901 shares. The stock had previously closed at $16.82.

Analyst Upgrades and Downgrades

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

Wolfspeed Price Performance

The firm has a market capitalization of $700.19 million and a PE ratio of -2.21. The company has a 50-day moving average price of $18.03 and a 200 day moving average price of $18.74.

Wolfspeed (NYSE:WOLF) last released its earnings results on Wednesday, January 28th. The company reported ($6.11) EPS for the quarter, missing the consensus estimate of ($0.74) by ($5.37). The company’s revenue for the quarter was down 6.6% compared to the same quarter last year. During the same period in the previous year, the firm earned ($0.95) EPS. As a group, research analysts anticipate that Wolfspeed, Inc. will post -4 earnings per share for the current year.

Hedge Funds Weigh In On Wolfspeed

A number of large investors have recently made changes to their positions in WOLF. Renesas Electronics America Inc. bought a new position in shares of Wolfspeed during the fourth quarter valued at approximately $293,400,000. Capital Research Global Investors bought a new stake in shares of Wolfspeed during the 3rd quarter worth approximately $79,426,000. Two Seas Capital LP bought a new stake in shares of Wolfspeed during the 2nd quarter worth approximately $962,000. UBS Group AG boosted its holdings in 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 acquiring an additional 1,233,419 shares during the period. Finally, XTX Topco Ltd grew its position in Wolfspeed by 4,954.1% in the 2nd quarter. XTX Topco Ltd now owns 982,770 shares of the company’s stock valued at $392,000 after acquiring an additional 963,325 shares during 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.